Selling

Business

Quiz 3 :

Buying Behavior and the Buying Process

Quiz 3 :

Buying Behavior and the Buying Process

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Assume that the federal government is going to make reducing obesity a major priority. The process it has adopted includes reducing sugar content in children's cereals, making vegetables more palatable, and reducing fat in the overall diet. Identify three product categories (not including vegetables) for which derived demand would influence manufacturers and producers of consumer packaged goods (foods sold to be cooked or heated and eaten at home). Include at least one product affected positively and one product affected negatively.
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It is the responsibility of the manufacturers and producers to stick on to the rules and regulations put forward by the regulatory authorities. In the mentioned scenario, the government is concerned about the health of residents of their country. Therefore, it insisted the producers and manufacturers to reduce the sugar and fat content in the food processed by them.
The new policy would influence the manufacturers and producers of package food including processed meat, ready-to-mix products and canned fish. These packaged foods containing high level of fat and other minerals would influence the manufactures to adopt significant steps that would minimize their harmful effects.
The supply of processed meat would affect the manufacturers negatively as it contains highest fat component. Reducing the fat and other components to minimum value would be much tougher for this item. Contrary to this, the ready-to-mix products can be easily modified. Hence, it would positively affect the manufacturers.

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When is vendor loyalty important? Find at least one example in the chapter (there are several) where vendor loyalty would prove to be important, and discuss why it was important in that particular instance. What can buyers do to improve vendor loyalty? When might vendor loyalty be inefficient or wasteful?
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Vendor loyalty stand for the honesty and integrity that a vendor makes use of while selling the products to the sellers and making the entire selling and buying experience fair and reasonable for the buyer.
Vendor loyalty is important because unless the buyer will find large amount of genuinity and honesty in the seller and the products that he is selling, the customer will not remain loyal and stick to the seller for future purchases and this will create a loss for the vendor in terms of loss of customer and the related revenue from him. This calls for the high importance of vendor loyalty.
Example- A ski enthusiast went to the seller of ski equipments to buy products like a ski board, headgear, wrist and knee wear, goggle, ski-dress etc. In making a purchase, the seller gave genuine suggestions to the buyer related to the best product and brand that would be capable of serving the needs of the buyer. This made the entire buying experience of the buyer wonderful making him get loyal for the seller.
This example serves the importance of being loyal to the customers which makes the vendor to get good reputation and repeated buying from the same customer. If in case, the vendor has not shown loyalty and sold unreasonable products to the buyer, then this could had been resulted quite fatal for the buyer and a legal obligation for the seller.
To increase vendor loyalty, the vendor could motivate himself by reading the importance of being a good and fair vendor and apply the given principles into his selling techniques so that the vendor loyalty could be improved.
Vendor loyalty would be insufficient or wasteful when the buyer making the purchase is strong-headed and highly determined to buy a particular product even though if the vendor is suggesting a better product that is capable of serving the buyer's needs. In this situation, the vendor loyalty would be insufficient or wasteful.

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Create a matrix of types of needs and types of customers. Which customer types share the same types of needs or express needs in the same way? Which ones differ? Why? Relate your chart to the multi attribute matrix. How would your chart help you prepare to sell?
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A matrix specifying the type of customers and type of needs are mentioned below:
img From the above matrix, it can be identified that the end users and the government have the same need of using the products i.e. for consumption purpose. The producers and resellers have the same need of selling the products.
The producers won't consume the products as their intention of production is selling. The main intention of the end user and government is consumption rather than production and selling. The resellers found benefits from buying the used products and reselling it.
When relating this matrix to the multi attribute matrix, the selling process would become more comfortable. Combining both these matrices, the type of customers and their needs would be identified much clearly. Through this chart, appropriate promotional activities can be adopted by understanding the needs to target customers.

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Frank Briles, account executive and his boss, Kylie Martinez, were talking over one of his accounts, Parker Pet Products. Frank was describing his initial meeting with Shirley Parker, CEO of the family pet food manufacturer. "She said that Mark Davis, the company's HR director, asked her if he could look into getting health care for the company. She said he was having trouble finding new employees because there were so few benefits. But she also said that the CFO was against adding more costs," Frank reported. "Do you think she was serious about the costs?" asked Shirley. "I think so." Frank's face showed his lack of confidence in knowing the answer. "What I do know is that they have no budget set aside for it." "How will they determine a budget? And what will their process be in making a decision?" Frank looked at his computer for notes he had taken on the meeting. "Well, we're lucky in the sense that they've not really set up a process. So we can help them determine what's important, assuming I can get to the right people fast enough. As for budget, that will be decided by Shirley and the CFO." Kylie gave Frank a sharp look. "Right people? What do you mean?" "They're setting up a committee," said Frank. "I've asked to have an opportunity to meet with them and just talk through options and process. I know that there will be two employee representatives, one from each plant, along with the HR guy, the CFO, Shirley, and the two plant managers. What I don't know is how they will make the decision or what they want. What type of purchase situation is this? What are the implications for Frank?
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A chain of restaurants wants to purchase a new order entry computer system tied into an accounting system that manages food inventory and automatically replenishes food items. Which criteria for evaluating supplier proposals might be used by (a) the purchasing agent, (b) the information systems department, (c) a store manager, and (d) the head of the legal department? How would this purchase differ from a purchase of the same products by a company that resells store fixtures and equipment to small restaurants?
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You are talking about this class to someone who isn't very familiar with business. When you mention you are studying how people make buying decisions and that this information will help you be a better salesperson, your friend says that you are just trying to learn how to manipulate people more effectively. How do you respond?
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Mitchell's Metal Shop is considering the purchase of a new press, a machine that bends sheet metal. The cost is $10,000, which is about 25 percent of the firm's profit for the quarter. Ford Motor Company is also considering buying about 30 new presses. Discuss how risk is different for Frank Mitchell, owner of Mitchell's Metal Shop, and Ford.
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What would you do? Do you lower your price or walk away? Why? Write out specifically what you would say next.
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Do buyers have to follow the same ethics principles as sellers? For example, sellers have to fully disclose all information. Do buyers? Why or why not? What ethical principle violation occurred here?
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Review each of the purchases in Question 3. What information would you need to conduct a value analysis for each? Note, you will need some different and some similar information in each situation.
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Frank Briles, account executive and his boss, Kylie Martinez, were talking over one of his accounts, Parker Pet Products. Frank was describing his initial meeting with Shirley Parker, CEO of the family pet food manufacturer. "She said that Mark Davis, the company's HR director, asked her if he could look into getting health care for the company. She said he was having trouble finding new employees because there were so few benefits. But she also said that the CFO was against adding more costs," Frank reported. "Do you think she was serious about the costs?" asked Shirley. "I think so." Frank's face showed his lack of confidence in knowing the answer. "What I do know is that they have no budget set aside for it." "How will they determine a budget? And what will their process be in making a decision?" Frank looked at his computer for notes he had taken on the meeting. "Well, we're lucky in the sense that they've not really set up a process. So we can help them determine what's important, assuming I can get to the right people fast enough. As for budget, that will be decided by Shirley and the CFO." Kylie gave Frank a sharp look. "Right people? What do you mean?" "They're setting up a committee," said Frank. "I've asked to have an opportunity to meet with them and just talk through options and process. I know that there will be two employee representatives, one from each plant, along with the HR guy, the CFO, Shirley, and the two plant managers. What I don't know is how they will make the decision or what they want. How can Frank use the multi attribute matrix to guide his sales plan?
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Dub Oliver runs the maintenance department at the paper mill, and he buys lots of hardware to fix equipment. Right now, he orders most of it through a website at NCH. If you work for Home Depot, how would you try to make a sale to Oliver? You can assume you have a website he can order through, too.
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How would your multi attribute matrix for a new car differ from that of your parents? How is it that you might have some of the same desires (such as high gas mileage) yet consider completely different cars?
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You know that American Airlines and Delta Airlines both have goals for purchasing from womenand minority-owned businesses (see "Building Partnerships 3.1" ). You have a product that is innovative and patented, and it will save airlines like American and Delta over 30 percent in fuel costs. But your business does not qualify as woman- or minority-owned because you are a white male, so you are thinking of bringing a partner into the business-your sister. Is this appropriate? Or would it be better to license the product to an already certified minority-owned business? (In Reference Building Partnerships 3.1") img
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Assume you work for a division of 3M that makes medical monitoring systems. How would the purchasing decision process differ in the following situations? Which situation is a new task? A modified rebuy? A straight rebuy? How likely is the buyer to get other people in the organization involved? Which types of people are likely to get involved in each decision? Which situation is likely to produce the slowest decision ? a. The organization is purchasing a customdesigned machine to be used in the manufacturing of metal racks that house multiple monitoring systems. b. An organization reorders plastic shields that it uses in making medical monitoring equipment from a regular supplier, a supplier that it has bought from in the past. . c. The organization is designing a new line of edical monitoring equipment and wants an improved and updated microprocessor. It is considering its past suppliers as well as some suppliers that it has not bought from before.
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Frank Briles, account executive and his boss, Kylie Martinez, were talking over one of his accounts, Parker Pet Products. Frank was describing his initial meeting with Shirley Parker, CEO of the family pet food manufacturer. "She said that Mark Davis, the company's HR director, asked her if he could look into getting health care for the company. She said he was having trouble finding new employees because there were so few benefits. But she also said that the CFO was against adding more costs," Frank reported. "Do you think she was serious about the costs?" asked Shirley. "I think so." Frank's face showed his lack of confidence in knowing the answer. "What I do know is that they have no budget set aside for it." "How will they determine a budget? And what will their process be in making a decision?" Frank looked at his computer for notes he had taken on the meeting. "Well, we're lucky in the sense that they've not really set up a process. So we can help them determine what's important, assuming I can get to the right people fast enough. As for budget, that will be decided by Shirley and the CFO." Kylie gave Frank a sharp look. "Right people? What do you mean?" "They're setting up a committee," said Frank. "I've asked to have an opportunity to meet with them and just talk through options and process. I know that there will be two employee representatives, one from each plant, along with the HR guy, the CFO, Shirley, and the two plant managers. What I don't know is how they will make the decision or what they want. What is the likely makeup of the buying center? Who plays or has played which roles?
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Read "Building Partnerships 3.1." Jenna Weber, salesperson for Hormel ® , described two buyers. One was friendly and easy to get along with, while the other was tough, hard to get an appointment with, and impatient during the meeting and demanded proof of almost everything she said. Are these the only two types of personalities she might run into? What could she have done better with the bacon promotion?
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