Lecture 4 (AI)

Question 1

What is organizational buying?

Answer 1

The decision-making process by which formal organizations establish the need for purchased products and services, identify, evaluate, and choose among alternative brands and suppliers.

Question 2

What defines the business market?

Answer 2

All organizations that acquire goods and services used in the production of other goods and services that are sold, rented, or supplied to others.

Question 3

What are the key differences between business and consumer markets?

Answer 3

• Number of buyers
• Type of relationships
• Number of people involved in a purchase
• Demand aspects

Question 4

True or False: Business markets have fewer, larger buyers than B2C markets.

Answer 4

True

Question 5

What is derived demand in B2B markets?

Answer 5

The demand in B2B markets depends on the demand in B2C markets.

Question 6

What is inelastic demand?

Answer 6

The total demand for business goods and services is not strongly influenced by price changes, especially not in short-term contexts.

Question 7

What is the straight rebuy buying situation?

Answer 7

The purchase department reorders supplies on a routine basis and chooses from suppliers on approved lists.

Question 8

What are the seven key roles in the buying center?

Answer 8

• Users
• Influencers
• Buyers
• Deciders
• Approvers
• Gatekeepers
• Decision makers

Question 9

What influences organizational buying decisions?

Answer 9

They are both rational and emotional, serving both organizational and individual needs.

Question 10

What are the stages in the buying process?

Answer 10

• Problem Recognition
• General Need Description
• Product Specification
• Supplier Search
• Proposal Solicitation
• Supplier Selection
• Order-Routine Specification
• Performance Review

Question 11

Fill in the blank: The buyer identifies appropriate suppliers through _______.

Answer 11

[catalogues, trade shows, ads, contact with other companies, internet]

Question 12

What is a modified rebuy?

Answer 12

A buying situation where the buyer wants to modify product specifications, prices, delivery requirements, etc.

Question 13

What is a blanket contract?

Answer 13

A long-term relationship where the supplier promises to resupply the buyer as needed with agreed prices over a predetermined time period.

Question 14

What are the five forces in the marketing environment?

Answer 14

• Political/legal environment
• Economic environment
• Ecological/physical environment
• Social/cultural and demographic environment
• Technological environment

Question 15

What is the microenvironment in marketing?

Answer 15

The immediate environment surrounding the company, including customers, suppliers, distributors, and agencies.

Question 16

True or False: Companies do not need to monitor changes in the marketing environment.

Answer 16

False

Question 17

What is the goal of the purchasing/procurement process?

relationship to?

Answer 17

To obtain the highest benefit package in relation to the price of a given market offering.

Question 18

What is the role of the buying center in the buying process?

DM Unit of ?

Answer 18

It is the decision-making unit of a buying organization, consisting of all individuals/groups involved in the buying process.

Question 19

What is the significance of supplier selection in the buying process?

Answer 19

It involves specifying desired supplier attributes and their relative importance, varying with the type of buying situation.

Question 20

Fill in the blank: The buying center may negotiate with preferred suppliers for better _______.

Answer 20

[prices and terms]

Question 21

What are the two main categories of the marketing environment?

Answer 21

Microenvironment and Macroenvironment

Microenvironment includes customers, suppliers, distributors, agencies, and competitors. Macroenvironment includes fads, trends, technological advancements, and social, cultural, political, ecological, and legal forces.

Question 22

What does PEEST stand for?

Answer 22

Political/Legal, Economic, Ecological/Physical, Social/Cultural, and Technological

PEEST is an acronym for the five overall forces that need to be considered in the marketing environment.

Question 23

True or False: The Political/Legal Environment includes only government laws.

Answer 23

False

It also includes government agencies and groups that influence organizations and individuals.

Question 24

What are the four primary purposes of business legislation?

Answer 24

• Protect companies from unfair competition
• Protect consumers from unfair business practices
• Protect society’s interests from irresponsible business behavior
• Change businesses with the social costs created by their products or processes

Question 25

What drives businesses to pay more attention to consumers’ rights?

Answer 25

Special Interest Groups ## Footnote These groups advocate for issues related to age, gender, ethnicity, sexual orientation, etc.

Question 26

Fill in the blank: Purchase power depends on _______.

Answer 26

[income levels, prices, savings, debts, and credit availability]

Question 27

List the five broad income-distribution patterns.

Answer 27

* Very low incomes * Mostly low incomes * Very low and very high incomes * Low, medium, and high incomes * Mainly medium incomes

Question 28

How can two consumers with the same income have vastly different living standards?

Answer 28

Due to differences in savings, debts, and needs ## Footnote Needs can include health, childcare, transportation, etc.

Question 29

What is a competitive advantage in the Ecological/Physical Environment?

Answer 29

Creating solutions that ensure environmental protection ## Footnote Companies that do this often outperform others.

Question 30

What is greenwashing?

Answer 30

Deceptively persuading the public that products, policies, and objectives are environmentally friendly.

Question 31

What implications does population growth have for business practice?

Answer 31

A growing population does not always imply growing markets without sufficient purchase power.

Question 32

What demographic factor influences the demand for certain products?

Answer 32

Population Age Mix ## Footnote For example, younger populations may demand toys, while older populations may require medical services.

Question 33

Define cohorts in the context of marketing.

Answer 33

Groups of individuals who grew up during the same time period, with shared defining moments shaping their values and purchase patterns.

Question 34

What is the impact of increasing diversity in marketing?

Answer 34

Countries vary in composition, influencing marketing strategies targeting ethnic or religious groups.

Question 35

What changes are seen in household patterns in Europe?

Answer 35

Decreasing household size and more complex family structures in Southern Europe, with an increase in single households in Northern Europe.

Question 36

What are core cultural values?

Answer 36

Persistent beliefs passed from parents to children, reinforced through major social institutions.

Question 37

True or False: Secondary values are rarely open to change.

Answer 37

False ## Footnote Secondary values are more flexible and can change over time.

Question 38

What is one of the most dramatic forces in the technological environment?

Answer 38

New technology often questions the status quo.

Question 39

How do major new technologies influence the economy?

Answer 39

They influence the economy’s growth rate and create long-term consequences that are difficult to forecast.

Question 40

What factors should a Norwegian company consider when expanding into Latin America?

Answer 40

Opportunities and challenges based on differences between the countries ## Footnote This includes comparing the OECD Better Life Index for insights.