MBA 706 - M Kim - Summer AP1 -2026 /2027
Frequently Tested Exam Questions With
Verified Multiple Choice and Conceptual
Actual 100% Correct Detailed Answers
Guaranteed Pass!!Current Update!!
Business Buying Process - ANSWER 1. problem recognition
2. develop product specifications
3. vendor identification & qualification
4.solicitation of proposals or bids
5. vendor selection
6. order processing
7. vendor performance review
PROBLEM RECOGNITION - ANSWER business buyers recognize needs due to
special circumstances
EX: when equipment/machinery breaks/malfunctions
DEVELOP PRODUCT SPECIFICATIONS - ANSWER detailed product specifications
define business purchases b/c new purchases must be integrated with current
technologies & processes
VENDOR ID & QUALIFICATION - ANSWER business buyers ensure potential
vendors can deliver on needed product specifications, within specified time frame
& in needed quantities
,SOLICITATION OF PROPOSALS OR BIDS - ANSWER buying firm requests that
qualified vendors submit proposals/bids
VENDOR SELECTION - ANSWER buying firm selects vendors that can best meet
its needs. issues like reputation, timeliness of delivery, guarantees, & personal
relationships with members of buying center are more important than price
ORDER PROCESSING - ANSWER involves details of processing the order,
negotiating credit terms, setting firm delivery dates, & final technical assistance
needed to complete purchase
VENDOR PERFORMANCE REVIEW - ANSWER both product & vendor
specifications are evaluated
2. Factors influencing BUSINESS Buying Process - ANSWER 1. environmental
conditions
2. organizational factors
3. individual factors
Factors influencing BUSINESS Buying Process
ENVIRONMENTAL CONDITIONS - ANSWER -increase uncertainty, risk, &
complexity associated with the purchase
-in situations of rapid "environmental change," business buyers alter their buying
plans, postpone purchases, or cancel purchases until things settle
-affect the purchase of products as well as decisions regarding recruitment &
hiring of employees
ORGANIZATIONAL FACTORS - ANSWER -include internal & external
environmental conditions
-shift in firm's resources can change buying decisions, EX: temporary delay in
purchasing until favorable credit terms are arranged
,-if supplier cant provide needed quantities of products or cant meet needed
delivery schedule, the buying firm is forced to ID & qualify new suppliers
INDIVIDUAL FACTORS - ANSWER -importance depends on specific buying
situations & importance of firm's goals & objectives
-occurs when members of buying center are at odds over purchase decisions.
Power struggles arent common in business buying, & can bring entire process to a
halt if not handled properly
-manager's personal preferences or prejudices can influence business buying
decision as individual factors
Traditional Segmentation Approaches - ANSWER 1. mass marketing
2. differential marketing
3. niche marketing
MASS MARKETING - ANSWER -involves no segmentation
-occurs when co's aim marketing campaigns at total (whole) market
-adopts undifferentiated approach: assumes all customers in the market have
similar needs/wants that can be reasonably satisfied with a single marketing
program
-works best when needs of entire market are similar/homogenous
-ADVANTAGE: in terms of production efficiency & lower marketing costs
-RISKY: by offering standard products to all, the org becomes vulnerable to
competitors that offer specialized products that better match needs
DIFFERENTIAL MARKETING - ANSWER -necessary when customer needs are
similar within a single group, but their needs differ across groups (dividing the
total market into groups of customers having relatively common/homogenous
needs)
, -through well-designed & carefully conducted research, firms identify needs of
each market segment to create marketing programs that best match those
needs/expectations
-2 options:
1. multi-segment approach: medium-large firms, packaged goods & grocery
products, attract buyers in MORE THAN 1 SEGMENT by offering variety of
products that appeal to diff needs
2. market concentration: focus on SINGLE market segment; DISADVANTAGE: firm
can be vulnerable to changes in market segment, like demographic shifts &
economic downturns, by "putting all its eggs in 1 basket"
NICHE MARKETING - ANSWER -1 SMALL, WELL-DEFINED segment
-possess unique & specific set of needs
-customers will pay high prices for products that match specialized needs
-firms should understand & meet needs of target customers completely to earn
substantial share of market segment
-attractive market niche is one that has growth & profit potential, but not so
appealing as to attract competitors EX: Curves(for women), The Little Gym (for
kids)
Market Segmentation - ANSWER -process of dividing total market for
particular product into homogenous segments/groups
-should create groups where memeber are similar to each other but dissimilar ot
other groups
-involves the fundamental decision of whether to segment at all
-mandate in today's economy b/c:
~~~search for niche or unique products
Frequently Tested Exam Questions With
Verified Multiple Choice and Conceptual
Actual 100% Correct Detailed Answers
Guaranteed Pass!!Current Update!!
Business Buying Process - ANSWER 1. problem recognition
2. develop product specifications
3. vendor identification & qualification
4.solicitation of proposals or bids
5. vendor selection
6. order processing
7. vendor performance review
PROBLEM RECOGNITION - ANSWER business buyers recognize needs due to
special circumstances
EX: when equipment/machinery breaks/malfunctions
DEVELOP PRODUCT SPECIFICATIONS - ANSWER detailed product specifications
define business purchases b/c new purchases must be integrated with current
technologies & processes
VENDOR ID & QUALIFICATION - ANSWER business buyers ensure potential
vendors can deliver on needed product specifications, within specified time frame
& in needed quantities
,SOLICITATION OF PROPOSALS OR BIDS - ANSWER buying firm requests that
qualified vendors submit proposals/bids
VENDOR SELECTION - ANSWER buying firm selects vendors that can best meet
its needs. issues like reputation, timeliness of delivery, guarantees, & personal
relationships with members of buying center are more important than price
ORDER PROCESSING - ANSWER involves details of processing the order,
negotiating credit terms, setting firm delivery dates, & final technical assistance
needed to complete purchase
VENDOR PERFORMANCE REVIEW - ANSWER both product & vendor
specifications are evaluated
2. Factors influencing BUSINESS Buying Process - ANSWER 1. environmental
conditions
2. organizational factors
3. individual factors
Factors influencing BUSINESS Buying Process
ENVIRONMENTAL CONDITIONS - ANSWER -increase uncertainty, risk, &
complexity associated with the purchase
-in situations of rapid "environmental change," business buyers alter their buying
plans, postpone purchases, or cancel purchases until things settle
-affect the purchase of products as well as decisions regarding recruitment &
hiring of employees
ORGANIZATIONAL FACTORS - ANSWER -include internal & external
environmental conditions
-shift in firm's resources can change buying decisions, EX: temporary delay in
purchasing until favorable credit terms are arranged
,-if supplier cant provide needed quantities of products or cant meet needed
delivery schedule, the buying firm is forced to ID & qualify new suppliers
INDIVIDUAL FACTORS - ANSWER -importance depends on specific buying
situations & importance of firm's goals & objectives
-occurs when members of buying center are at odds over purchase decisions.
Power struggles arent common in business buying, & can bring entire process to a
halt if not handled properly
-manager's personal preferences or prejudices can influence business buying
decision as individual factors
Traditional Segmentation Approaches - ANSWER 1. mass marketing
2. differential marketing
3. niche marketing
MASS MARKETING - ANSWER -involves no segmentation
-occurs when co's aim marketing campaigns at total (whole) market
-adopts undifferentiated approach: assumes all customers in the market have
similar needs/wants that can be reasonably satisfied with a single marketing
program
-works best when needs of entire market are similar/homogenous
-ADVANTAGE: in terms of production efficiency & lower marketing costs
-RISKY: by offering standard products to all, the org becomes vulnerable to
competitors that offer specialized products that better match needs
DIFFERENTIAL MARKETING - ANSWER -necessary when customer needs are
similar within a single group, but their needs differ across groups (dividing the
total market into groups of customers having relatively common/homogenous
needs)
, -through well-designed & carefully conducted research, firms identify needs of
each market segment to create marketing programs that best match those
needs/expectations
-2 options:
1. multi-segment approach: medium-large firms, packaged goods & grocery
products, attract buyers in MORE THAN 1 SEGMENT by offering variety of
products that appeal to diff needs
2. market concentration: focus on SINGLE market segment; DISADVANTAGE: firm
can be vulnerable to changes in market segment, like demographic shifts &
economic downturns, by "putting all its eggs in 1 basket"
NICHE MARKETING - ANSWER -1 SMALL, WELL-DEFINED segment
-possess unique & specific set of needs
-customers will pay high prices for products that match specialized needs
-firms should understand & meet needs of target customers completely to earn
substantial share of market segment
-attractive market niche is one that has growth & profit potential, but not so
appealing as to attract competitors EX: Curves(for women), The Little Gym (for
kids)
Market Segmentation - ANSWER -process of dividing total market for
particular product into homogenous segments/groups
-should create groups where memeber are similar to each other but dissimilar ot
other groups
-involves the fundamental decision of whether to segment at all
-mandate in today's economy b/c:
~~~search for niche or unique products
