Chapter 7 Analyzing Business Markets and Buyer Behavior

True/False Questions
1. Organizational buying is the decision-process by which organizations establish and satisfy their needs for goods and services. True (moderate) p. 132 2. Mining, manufacturing, banking, and distribution services are all considered part of the business market. True (easy) p. 132 3. Characteristics of business markets include that there are more buyers and larger buyers. False (moderate) p. 134 4. When compared to the consumer market, the demand for goods and services in the business market is derived. True (moderate) p. 134 5. In selling to the government, the contract is always awarded to the lowest bidder. False (moderate) pp. 133-135 6. Government buyers differ from business buyers in that government buyers are monitored more closely by outside publics. True (moderate) pp. 133-135 7. Schools and prisons are considered institutional buying organizations and they tend to have captive clienteles and limited budgets. True (moderate) p. 133 8. A secretary who prevents salespersons from contacting users or deciders is playing a gatekeeper role. True (easy) p. 137 9. A straight rebuy is a more complex process than a new task because the firm is limited to an approved list of vendors. False (moderate) p. 136 10. Interpersonal factors have almost no influence in business purchasing decisions. False (moderate) p. 138, 140 11. A new supplier is least likely to make a sale to a prospect involved in the straight-rebuy situation. True (moderate) p. 136 12. Business buyers pay close attention to numerous economic factors such as interest rates, crossfunctional buying teams, and consumer spending. False (moderate) p. 138 13. The business buying process is influenced by environmental, organizational, and individual factors. True (moderate) p. 138 14. Reading an advertisement about a new business service in a trade magazine to which the purchasing agent subscribes would be an example of how a problem might be recognized in an organizational setting. True (moderate) pp. 141-142 15. In choosing a supplier, the relative importance of different attributes varies with the type of buying situation. True (moderate) p. 143

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16. Even if a supplier firm has the capacity to deliver a business product or service, that supplier might not be allowed to submit a proposal in the buying process. True (difficult) p. 143 17. When responding to a request for a written proposal, a business marketer should remember the document is primarily a technical document explaining the features of the product. False (moderate) p. 143 18. Product value analysis can involve determining which components can be made cheaper through redesign or standardization, while keeping the same performance level of those components. True (moderate) p. 142 19. In the negotiation process, if the potential supplier is faced with the lower price of a competitor, he or she should always lower his/her price. False (moderate) pp. 143-144 20. A blanket contract or stockless purchase plan establishes a long-term relationship in which the buyer promises to buy all the stock of a particular seller at agreed-upon prices. False (moderate) p. 144

Multiple Choice Questions

21. The business market differs from the consumer market in that _______________. a.) more mass media are used to communicate with the business market b.) it is a much larger market with many more buyers than the consumer market c.) it is a much smaller market in dollar volume than the consumer market d.) more product customization takes place in the consumer market e.) it acquires goods or services in order to use them for another purpose, as opposed to acquiring goods or services for personal consumption (difficult) p. 132 22. Organizational buying is _______________. a.) the process by which organizations recognize their needs for goods and services b.) a way a company can produce a greater variety of high-quality products at lower cost, in less time, with less labor c.) the decision-making process by which organizations establish and satisfy their needs for goods and services (difficult) p. 132 d.) the practice of establishing of strategic partnerships between manufacturers and their suppliers e.) the practice of buying a total solution for a problem from one seller 23. The _______________ consists of all of the organizations that acquire goods and services used in the production of other products or services that are sold, rented, or supplied to other customers. a.) business market (moderate) p. 132 b.) institutional market c.) consumer market d.) government market e.) specialized market 24. All of the following are major industries making up the business market EXCEPT: a.) agriculture, forestry, fisheries b.) manufacturing, mining c.) construction, transportation d.) banking, finance e.) governments, institutions (moderate) p. 132

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25. Erins secretary developed a file of visiting salespeople, but only allowed a few to actually have time on Erins calendar. Erin is frequently charged with buying expensive office equipment as part of her job. Erins secretary is playing what role in the business buying process? a.) initiator b.) user c.) decider d.) approver e.) gatekeeper (moderate) p. 137 26. Business buying behavior differs from consumer buying behavior in that _______________. a.) the buyers for the business market are typically more geographically dispersed than those for the consumer market and the demand for products and services in the consumer market is unaffected by price fluctuations b.) fewer people typically participate in or influence business buying decisions than in the consumer market c.) businesses buy products to accomplish a single goal, which varies by industry and business d.) the demand for business goods and services is derived from consumers final demand (moderate) pp. 134-135 e.) businesses buy through longer channels with more intermediaries 27. When compared to the consumer market, the demand for goods and services in the business market is _______________. a.) far more elastic b.) significantly more constant c.) derived (moderate) pp. 134-135 d.) more likely to be affected by changes in price e.) all of the above 28. Which of the following is true of the U.S. government as a market? a.) The U.S. government is the largest customer in the world. (moderate) pp. 133-135 b.) Most purchases by the U.S. government are in the billions of dollars, usually for technology. c.) The U.S. government will always award the contract to the lowest bidder. d.) A comprehensive bid proposal might take as much as a few days to prepare and weigh in at a few dozen pages. e.) Cost minimization is the driving force behind buying decisions made by the U.S. government. 29. Business buyers _______________. a.) are geographically as diverse as consumers b.) tend to be geographically concentrated with over 1/2 of them in seven states (difficult) pp. 134-135 c.) are largely concentrated in the southwestern United States. d.) tend to be found in smaller communities and rural areas in the Midwest e.) use geographical dispersion to keep shipping costs low

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30. 3M has developed a new type of plastic film used for shipping security. It is more durable than any other form of film on the market. The first year after the product was introduced its sales totaled $435 million. Analysts have predicted an annual growth of 30 percent as businesses like transportation companies discover how well the film protects their products. Since the demand for the new 3M film is dependent on the demand for the products transported within it, the demand for the film is _______________. a.) derived (moderate) pp. 134-135 b.) inelastic c.) routine d.) elastic e.) constant 31. The buying department for a nursing home is informed the price of the ibuprofen used for patient medication has increased by 15 percent. He orders a new supply anyway because he knows he can pass the increase on to the clients. This is an example of business products having _______________ demand. a.) routine b.) inelastic (moderate) pp. 134-135 c.) volatile d.) accelerated e.) elastic 32. A llama and emu breeder buys much of the food she needs to feed her livestock from a local farmer. As a part of the contract between the two parties, the farmer buys all the manure the breeder can produce for its organic vegetables. This is an example of _______________. a.) direct purchasing b.) relationship marketing c.) leasing d.) systems selling e.) reciprocity (moderate) pp. 134-135 33. The institutional market is best described as having _______________. a.) low budgets and a captive clientele (moderate) p. 133 b.) demand elasticity and geographically concentrated suppliers c.) contract negotiations and fluctuating demand d.) derived demand, geographically concentrated suppliers, and budgetary constraints e.) demand that is elastic, derived, and fluctuating 34. _______________ organizations typically require suppliers to submit bids. Normally, they award the contract to the lowest bidder, although they sometimes take into account a suppliers superior quality or reputation for completing contracts on time. a.) Business b.) Institutional c.) Consumer d.) Government (moderate) pp. 133, 135 e.) Specialized

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35. Suppliers describe governmental organizations as _______________. a.) always selecting quality over price when buying products and/or services b.) avoiding opting for the bottom-line perspective c.) sometimes considering quality or reputation but primarily rewarding contracts on the basis of price (difficult) p. 135 d.) requiring minimal paperwork and having a process open to public scrutiny e.) woefully lacking in specific guidelines for would-be suppliers 36. Which of the following buying situations would represent the purchase of office supplies such as reams of computer and copier paper, and computer disks? a.) straight rebuy (easy) p. 136 b.) modified rebuy c.) new task d.) routine rebuy e.) direct purchase 37. The most routine decision process undertaken by business buyers is called a _______________. a.) straight rebuy (easy) p. 136 b.) modified rebuy c.) new task d.) routine rebuy e.) direct purchase 38. A new supplier is least likely to make a preliminary sale to a prospect involved in which of the following buying situations? a.) new task b.) modified rebuy c.) functional rebuy d.) straight rebuy (moderate) p. 136 e.) direct purchase 39. Angelo Weinstein is a produce buyer for Alliant, a large food supplier. He is buying lettuce, cucumbers, and tomatoes for producing pre-made salads. He orders the same number and quality of these vegetables as before but notices that his suppliers prices have increased slightly. Angelo is conducting a _______________. a.) straight rebuy (moderate) p. 136 b.) direct purchase c.) modified rebuy d.) new task buy e.) reciprocal buy 40. The _______________ is a situation in which the buyer wants to modify product specifications, prices, delivery requirements, or other terms. a.) straight rebuy b.) direct purchase c.) modified rebuy (easy) p. 136 d.) new task buy e.) reciprocal buy

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41. Angelo Weinstein is a produce buyer for Alliant, a large food supplier. He is buying lettuce, cucumbers, and tomatoes for producing pre-made salads. He orders the same number and quality of these vegetables as before but notices that his suppliers prices have increased slightly. If prices from his usual produce supplier continue to rise, you can expect Angelo to engage in a _______________. a.) straight rebuy b.) direct purchase c.) modified rebuy (moderate) p. 136 d.) new task buy e.) functional rebuy 42. The _______________ is a buying situation in which a purchaser buys a product or service for the first time. a.) straight rebuy b.) direct purchase c.) modified rebuy d.) new task buy (moderate) p. 136 e.) functional rebuy 43. Robison Corp. is a ground beef processing plant. Owners William and Walker Robison attended a trade show and saw a meat grinding machine that operates at a capacity of 9,000 pounds per hour and requires only one employee. Until the show, the brothers had no idea such a product existed. As far as they have learned only one company is manufacturing such a machine. They have calculated that such a machine could save them up to $185 a day in labor costs. They have contacted the company to learn more about the $53,000 grinder. The Rogers brothers are engaged in a: a.) straight rebuy b.) direct purchase c.) modified rebuy d.) new task buy (moderate) p. 136 e.) functional rebuy 44. Advertising usually has its greatest impact at the _____________ stage of new-task buying. a.) awareness (moderate) p. 136 b.) interest c.) trial d.) evaluation e.) adoption 45. Salespeople usually have their greatest impact at the _______________ stage of new-task buying. a.) awareness b.) interest (moderate) p. 136 c.) trial d.) evaluation e.) adoption

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46. Which of the following has the most influence in straight rebuy and modified rebuy situations in a multinational corporation? a.) finance department b.) purchasing agents (difficult) p. 137 c.) administrative personnel d.) engineering department e.) production managers 47. Purchasing department personnel for a corporate farm would have the most influence when the organization is _______________. a.) buying marketing materials for its booth at a national agricultural trade show b.) purchasing farm equipment for the firms agricultural business unit c.) negotiating the performance specifications for new grain storage facilities d.) renewing its subscriptions to several trade journals (moderate) p. 137 e.) switching to a new vendor for satellite moisture reporting 48. The _______________ is composed of all those individuals and groups who participate in the purchasing decision-making process, who share some common goals and the risks arising from the decisions. a.) buying center (moderate) p. 137 b.) initiating team c.) purchasing division d.) engineering division e.) influencing center 49. In the buying center, _______________ are people who request that something be purchased, including users or others. a.) initiators (moderate) p. 137 b.) influencers c.) deciders d.) approvers e.) gatekeepers 50. Office manager Billie has signatory authority for organizational purchases under $2,500. She delegates the task of finding five new acceptable fax machines to a trusted subordinate, Jules. If Billie does not involve herself further in the buying process, other than to sign off on what Jules presents to her, her role is limited to that of _______________. a.) gatekeeper b.) decider c.) influencer d.) approver (moderate) p. 137 e.) user 51. Which of the following best describes the buying center role in which people have the power to prevent sellers or information from reaching members of the buying center. a.) initiators b.) influencers c.) deciders d.) approvers e.) gatekeepers (moderate) p. 137

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52. The owner of a mulch plant is planning to purchase a $41,000 trailer for hauling bulk product to a distribution company where the mulch will be packaged into 2 cubic feet bags, and sold at gardening supply stores. The operator of the distribution company would probably assume the roles of _______________ in the buying center. a.) user and gatekeeper b.) approver and influencer (difficult) pp. 137 c.) initiator, gatekeeper, and decider d.) decider, user, and influencer e.) influencer and gatekeeper 53. With the help of the yard operations manager, the owner of Memphis Logistics is planning on buying a sophisticated loader to move merchandise from trucks onto rail cars. It will be replacing an obsolete piece of equipment which the yard operations manager describes as hard to operate and potentially dangerous. In terms of the buying center, the yard operations manager who will be responsible for the overseeing the employees who operate and maintain the dumper has the roles of _______________. a.) gatekeeper and decider b.) influencer, user, and approver c.) buyer, influencer, initiator, and gatekeeper d.) decider, user, and buyer e.) initiator, influencer, and decider (difficult) pp. 137 54. Interest rates, demand for products, technological change, social responsibility concerns, and consumer buying patterns are all examples of _______________ influences on business buyers. a.) environmental (moderate) p. 138 b.) interpersonal c.) organizational d.) entrepreneurial e.) individual 55. Which of the following is an example of an organizational influence on a business buyer for a Korean manufacturer of designer clothes? a.) Paris fashion houses have announced the colors for this season will be teal and salmon. b.) OSHA is investigating why a worker lost her life in a factory accident. c.) A new dying technology is available that reduces textile fading by 30 percent. d.) The company has issued new purchasing policies on the selection of fabric, fasteners, and threads. (difficult) p. 138 e.) Aging consumers are ignoring the fashion designers as increasingly irrelevant. 56. Which of the following is NOT an example of an organizational influence that might affect the purchasing agent for a multinational conglomerate? a.) Many of the tasks formerly done by the purchasing agent are now being performed by a centralized purchasing department. b.) The conglomerate has adopted just-in-time production in two of its divisions. c.) The purchasing agent has a want-the-best attitude when it comes to buying component parts. (difficult) p. 138 d.) The organization is negotiating more long-term contracts than in previous years. e.) The company is doing much of its purchasing through the Internet.

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57. Because Dante is new at her job as company buyer, she is very cautious in her buying decisions even when engaged in straight rebuys. _______________ influences have the greatest effect on Dante as she performs her job. a.) Environmental b.) Interpersonal c.) Organizational d.) Individual (moderate) p. 138 e.) Cultural 58. Which of the following is not employed by companies that use lean production? a.) just in time (JIT) inventory b.) long lead-time supply/inputs ordering (moderate) p. 140 c.) single sourcing with early supplier involvement d.) strict quality control e.) stable production schedules 59. The gardener in charge of maintaining the beautiful grounds at an amusement park was strolling through the park looking at the flowers and bushes from a guests perspective when he noticed some Japanese beetles flying around. He made a mental note to himself that he had to order some Japanese beetle traps when he got back to the office. This is an example of which of the steps in the purchase/procurement process? a.) problem recognition (moderate) pp. 141-142 b.) general need description c.) product specification d.) supplier selection e.) supplier search 60. _______________ is an approach to cost reduction in which components are carefully studied to determine if they can be redesigned or standardized or made by cheaper methods of production. a.) Product value analysis (moderate) p. 142 b.) Customer cost analysis c.) Total quality management d.) Product reengineering e.) Marketing research 61. Which of the following buy phases would definitely be included in a modified rebuy situation? a.) problem recognition b.) general need description c.) supplier selection d.) supplier search e.) product specification (moderate) p. 142 62. A product value analysis is conducted at the _______________ step of the procurement process. a.) problem recognition b.) general need description c.) product specification (moderate) p. 142 d.) supplier search e.) proposal solicitation

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63. The routine placing of the twice-weekly order to restock a commercial kitchens freezer with meats, poultry, frozen juices, and fresh-frozen pre-mades like doughs and stuffed pastas, definitely includes which of the following stages in the business buying process? a.) problem recognition b.) general need description c.) order-routine specification d.) supplier search e.) product specification (moderate) p. 142 64. An online retailer of outdoor equipment was looking for some help with its Web site maintenance so as to be more user-friendly and convenient. The owner attended the 2002 Web-EX Trade Show and asked several of her colleagues for recommendations. She is in the _______________ phase of business buying. a.) problem recognition b.) general need description c.) product specification d.) supplier search (moderate) p. 143 e.) order-routine specification 65. The Knoll Textile Manufacturing Company is evaluating potential suppliers of zippers to be used in production of a line of childrens outerwear. The company is concerned about the delivery reliability, price, and supplier reputation. Knoll is in the _______________ phase of the business buying process. a.) supplier selection (moderate) p. 143 b.) proposal solicitation c.) product specification d.) performance review e.) order-routine specification 66. Easter Village store sells Easter-related cards and gifts year-round. The primary source for its domestic and foreign gifts is Festival Supply, but Easter Village also buys some ornaments from Pascualis Global and from Kernal Distributors. Both of the distributors continue to try to price their merchandise at prices lower than those of Festival Supply because Pascualis and Kernal Distributors are both: a.) outsuppliers (moderate) p. 144 b.) outsourcing agents c.) second-tier suppliers d.) value-added suppliers e.) subordinate suppliers 67. As Rikka and the salesperson talked, they agreed Rikka would buy six pallets of American flags, four 12-foot sections of display shelving, and two gross of George W. Bush bobble-head dolls for Rikkas arts and crafts supply store. In addition, the salesperson agreed to have the items delivered in ten working days and give Rikka an 8-percent discount. Rikka and the salesperson are engaged in which phase of the procurement process? a.) supplier selection b.) proposal solicitation c.) product specification d.) performance review e.) order-routine specification (moderate) p. 144

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68. A blanket purchase contract leads to _______________. a.) buyers being less dependent upon any given supplier b.) the rebuy process being upgraded to a new task buy each time theres a reorder c.) the supplier maintaining the inventory (difficult) p. 144 d.) systems selling e.) multiple sourcing 69. A(n) _______________ establishes a long-term relationship in which the supplier promises to resupply the buyer as needed at agreed-upon prices over a specified period. a.) blanket contract (moderate) p. 144 b.) specialized contract c.) over-run contract d.) purchase order contract e.) superior order contract 70. A company can review the performance of a supplier by _______________. a.) using a buyflow map b.) developing a supplier-attribute positioning map c.) using financial data from Dun and Bradstreet d.) aggregating the cost of poor performance to come up with an adjusted cost of purchase, including price (difficult) p. 144 e.) using any of the above methods

Essay Questions
71. Two sales associates, Diz Miller and Nestor Marlboro, enter a room outside the purchasing agents office. The purchasing agent works for a fiberglass manufacturer. Miller has sold to the company several times in the past. He has stopped by to see if the purchasing agent needs to restock any of his companys machine lubricants. Marlboro will try to convince the purchasing agent to buy a machine for extracting and trimming glass fibers that will reduce waste by 13 percent and costs $44,000. The furniture company currently does this by employing skilled laborers who use hand tools. Classify the products being sold in terms of buyclass. What buy phases are associated with each buyclass? In what buy phase do you think the purchasing agent is now? Answer: The lubricants will be a straight rebuy. The only two buy phases for the purchasing agent are product specification and performance review. The machine sold by Marlboro would be a new task buy and would require the purchasing agent to go through all the stages of the buy phase(1) problem recognition, (2) general need description, (3) product specification, (4) supplier search, (5) proposal solicitation, (6) supplier selection, (7) order-routine specification, and (8) performance review. The agent is in the product specification phase with the adhesives. Given the way the question is written, he is most likely in the supplier search phase for the new task buy. (difficult) Table 7-2 and accompanying text pages

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72. Rhet and Julie Raymond had a larger-than-average crop of mangos last year. They decided to make some extra jars of Julies mothers mango chutney to see if they could sell it at a local crafts fair. Response was very promising and demand was strong. Now Julie and Rhet own a company that produces gourmet chutneys under the brand name Exoti-Sauce. Working at the company now are Rhet, Julie, her mother Mandalee, and Rhet and Julies nephew Bert who makes deliveries and does the heavy lifting and cleaning. Rhet is in charge of marketing and helps out in the kitchen. There are also a number of part-time workers. A salesperson wants to sell them a bottle-labeling system that will speed up production by 200 percent. It costs about $12,500. In a short essay, discuss how each of the companys full-time employees might assume various roles in the buying center. Answer: Students answers to this question will vary, but the following are some possible answers. a.) Julie knows how much work it is to glue on labelsso she would definitely be an initiator. She would also by the same logic be a user. Since the decision is joint, she would be an influencer to convince the others and a decider, an approver, and a buyer as part owner of the company. She could take the role of gatekeeper if she knew of a cheaper system but decided not to tell the others about it. b.) Rhet is not involved in the production part, but as part owner of the company, he would take the roles of decider, approver, and buyer. He could take the role of gatekeeper if he refused to let the salesperson present any other equipment that might be useful in the Exoti-Sauce kitchen. c.) Mandalee also knows how much work it is to place the labelsso she would definitely take the roles of initiator and user. Even though she has no ownership rights, she would also act as an influencer. She could act as a gatekeeper if she knew the building currently used by ExotiSauce was not big enough to hold the system where it could be used efficiently. d.) Bert is not involved in the production of chutneys except to help clean. Depending on how easy the new system is to clean, he could be an influencer. He would most likely play no other roles. (difficult) pp. 137 73. Imagine you are a salesperson for a company that sells office supplies to buyers in different buying situations. In a short essay, develop three scenarios that illustrate each of the three situations. Answer: Students answers will vary. The straight rebuy could occur when the buyer has bought from you previously and is simply restocking its shelves. The modified rebuy could occur when the buyer wants to modify delivery schedules or payment plans. New task buying would occur if the buyer were purchasing something it had not previously purchasedsuch as audiovisual equipment or instructional or motivational books or networking software. (easy) pp. 136 74. In a brief essay, explain how an organizational buyer might decide whether a potential supplier is qualified and whether a proposal should be solicited and/or accepted from that supplier. How can the supplier improve their odds in the process? Answer: Some buyers require that suppliers have external certifications, such as ISO 9000. Better answers would tell why this is a helpful indicator. Attaining trusted adviser status through expertise also helps a company stand out to the potential buyer. Out-suppliers may have to fight harder for a piece of the business by finding ways to overcome the status quo (e.g., the usual suppliers get all the new contracts). Some bidders do not have the needed capacity to actually fulfill the contract, and buyers should carefully consider track records of reliability and potential for bidders who are not well known. (moderate) pp. 143-144

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75. Explain how the governmental procurement process differs from the business market purchase process. Answer: Government organizations are major buyers of goods and services. Government organizations typically require suppliers to submit bids and normally they award the contract to the lowest bidder. Governments will also buy on a negotiated contract basis, primarily in the case of complex projects involving major R&D costs and risks and in cases where there is little competition. Government organizations tend to favor domestic suppliers over foreign ones. Because their spending decisions are subject to public review, government organizations require considerable paperwork from suppliers. Just as companies provide government agencies with guidelines on how best to purchase and use their products, governments provide would-be suppliers with detailed guidelines describing how to sell to the government. (easy) pp. 133, 135

Mini-Cases
Mini-Case 7-1 Dr. Therese Tureks Minnesota ear, nose, and throat practice is booming and she needs more office space to accommodate the growth. She asks her office manager James to help decide the attributes that will assure that a new space will be adequate for the practice now and in the immediate future. James asks all the employees for their input as to what is needed in a new office. After much research, James recommends that the office move to a new medical complex, where office space is priced 30 percent higher. The new space has an on-site, out-patient surgery center, better wiring for more sophisticated machinery, and covered parking. James does not include information about more affordably-priced and available office space in the same complex because he would like a shorter commute to work. Dr. Turek is impressed with James recommendations and announces to staff and patients that the practice will be relocating in 60 days. 76. Refer to Mini-Case 7-1. In the case, James had what roles in the buying process for new office space? a.) initiator and decider b.) user and approver c.) influencer and gatekeeper (moderate) p. 137 d.) initiator and user e.) gatekeeper and initiator 77. Refer to Mini-Case 7-1. Dr. Turek played what roles in the decision to move her practice? a.) initiator, user, and gatekeeper b.) initiator, user, and approver (moderate) pp. 137 c.) only initiator d.) only approver e.) only influencer

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78. Refer to Mini-Case 7-1. When James withheld information about the closer office possibilities, this was an example of which type of influence on the buying process? a.) environmental b.) organizational c.) interpersonal d.) individual (moderate) p. 138 e.) macro Mini-Case 7-2 Billionaire investor Warren Buffet once called his jet The Indefensible, referring to its high price tag. Later, however, he named it The Indispensable. Others share this sentiment because many corporations today own corporate jets to support efficient schedules and to reach remote locations. Given the increasingly global nature of business, corporate aircraft makes sense. The GulfStream V, one of the top of the line executive jets costs $38 million. Its speed is nearly 600 miles per hour. A nonstop flight between New York and Tokyo takes about 13 hours and 40 minutes on the Gulfstream V and about an hour and ten minutes longer on a commercial jet. Major manufacturers of corporate jets are Gulfstream, Cessna, the Beech Division of Raytheon Co., and Dessault Aviation of France. The largest manufacturer in terms of sales is Bombardier, which makes the Learjet. 79. Refer to Mini-Case 7.2. Most executives, including Warren Buffet, would describe the demand for corporate jets as _______________. a.) inelastic (moderate) p. 134 b.) routine c.) low-involvement d.) elastic e.) accelerated 80. Refer to Mini-Case 7-2. Considering how shareholders have felt about the ownership of corporate jets in general, now when a company considers buying a corporate jet, they will engage in a(n) _______________. a.) functional buy b.) modified rebuy c.) indirect purchase d.) new task buy (moderate) p. 136 e.) systems buy 81. Refer to Mini-Case 7.2. The fear of angering shareholders is an example of a(n) _______________ influence on the buying process. a.) environmental (moderate) p. 138 b.) interpersonal c.) organizational d.) entrepreneurial e.) individual

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