Organizational Buying Behavior Is Similar to Consumer Behavior in Some

question 87

Multiple Choice

Organizational buying behavior is similar to consumer behavior in some ways and different in others.One commonality is

• A)both use five different stages in the buying process.
• B)both use formal evaluation criteria when choosing among alternative brands.
• C)both are affected by derived demand.
• D)both have unlimited options for suppliers.
• E)both rely on gatekeepers to supply product information.

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Definitions:

Factory Rent

Expenses incurred for leasing a premises to use as a manufacturing or production facility.

Prime Costs

The combined direct costs of raw materials and labor that are directly attributable to the production of a product.

Conversion Costs

The sum of direct labor and overhead costs involved in converting raw materials into finished goods.

Electricity Costs

The expenses incurred for the consumption of electricity, often classified as a variable cost in production or operations.