Which of the Following Statements About Organizational Buying Compared to Consumer

question 198

Multiple Choice

Which of the following statements about organizational buying compared to consumer buying is most accurate?

• A)Perceived risk is lower in organizational buying.
• B)Brand loyalty exists in both organizational and consumer buying.
• C)More organizational buying decisions are lower in involvement.
• D)Organizational buyers are more influenced by lifestyle factors.
• E)Derived demand is more important in consumer buying.

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Definitions:

Milling Department

A specific division within a manufacturing facility where milling processes, such as grinding, crushing, or cutting, are performed on raw materials.

Plantwide Predetermined Manufacturing Overhead Rate

A single overhead rate calculated for an entire manufacturing plant, used to allocate manufacturing overhead costs to products based on a common activity base, such as machine hours.

Machine-Hours

A measure of the total hours that machinery is in operation during the production process.

Markup

The amount added to the cost of a product to create a price point that ensures profit for the company.