Organizational Buying Behavior Is Similar to Consumer Behavior in Some

question 201

Multiple Choice

Organizational buying behavior is similar to consumer behavior in some ways and different in others. One key difference is that in the organizational buying process,

• A) only four stages are used.
• B) fewer individuals are involved.
• C) firms are not affected by derived demand.
• D) the postpurchase evaluation behavior is more formalized.
• E) there is less reliance on gatekeepers to control product information.

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Definitions:

Goodwill

Goodwill represents the excess of the purchase price paid for an acquired company over the fair value of its identifiable net assets at the time of acquisition.

Equity Method

An accounting technique used to record investments in which the investor has significant influence over the investee, recognizing their share of the profits and losses.

Indefinite Useful Life

An intangible asset with an expected life that extends beyond the foreseeable future, not requiring amortization but subject to annual impairment tests.

Acquisition Differential

The difference between the purchase price of an acquired entity and the fair value of its identifiable net assets.