General Electric Made a Decision to Purchase Rather Than Manufacture

question 112

Multiple Choice

General Electric made a decision to purchase rather than manufacture electric motors for its clothes dryers.The firm used a formal vendor rating system to evaluate suppliers and notified those whose parts did not meet its quality standards.If a supplier failed to correct the problem,GE would drop the firm as a future supplier.Which stage in the organizational buying decision process would GE make this decision?

• A) purchase decision stage
• B) information search stage
• C) postpurchase behavior stage
• D) alternative evaluation stage
• E) problem recognition stage

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Definitions:

Four-Firm Concentration Ratio

A measure of market concentration that calculates the combined market share of the four largest firms in an industry.

Total Sales

The aggregate revenue a business or sector generates from selling goods or services over a specific period.

Advertising Expenditures

The amount of money spent on promoting products, services or brands through various media channels.

Monopolistically Competitive

A monopolistically competitive market is characterized by many sellers offering products that are similar but not identical, allowing for competition on factors other than just price, such as quality, brand, or features.