Chapter 7: Organizational Buyer Behavior of Market Group

1. Organizational demand is ________ demand: it comes ultimately from the

demand for consumer goods or services.
2. Through good __________ __________, marketers can identify emerging
industries, companies, and associations.
3. Hotel managers need to understand the financial health of the __________ and
__________that they serve. If clients fall on hard times, managers need to look
for replacements for their lost business.
4. Compared with consumer purchases, a business purchase usually involves
more __________ and a more __________ purchasing effort.
5. Professional meeting planners receive training in __________ skills. Hotels must
have well-trained salespeople to deal with well-trained buyers.
6. __________ buyers usually face more complex buying decisions than __________
buyers, because their purchases involve large sums of money, complex
technical features, and economic considerations.
7. In the organizational buying process, buyer and seller are often very
__________ of each other. In other words, sales is a consultative process.
8. The decision-making unit of a buying organization, sometimes called the
__________ __________, is defined as all those individuals and groups who
participate in the purchasing decision-making process, who share common
__________ and __________arising from the decisions.
9. The buying proposal is initiated by __________ who help define product
specifications.
10.__________ have a direct influence on the buying decision but do not make the
final decision themselves. Examples of these members include past
presidents or spouses to executives.
11.A companys sales manager selects a hotel and negotiates the arrangements.
Therefore, the sales manager is a __________.
12.Although a sales manager may select and negotiate the arrangements in the
buying process, they must seek the formal permission of the __________.
13.Gatekeepers have the power to prevent __________ or __________ from
reaching members of the buying center. A secretary is an easy example of a

gatekeeper.
14.Larger sellers use __________, __________ selling to reach as many buying
participants as possible. Their salespeople virtually live with their highvolume customers.
15.Some vendors believe that the most important influences are __________.
They see buyers as favoring the supplier who offers the lowest price, best
product, or most service. This view suggests that hospitality marketers should
concentrate on __________ and __________ variables.
16.In reality, organizational buyers commonly respond to both economic and
__________ factors. They may respond to favors, attention, and risk avoidance.
17.Organizational buyers are heavily influenced by the current and expected
economic market. Factors such as the level of __________ demand, the
economic __________ and the cost are important.
18.The hospitality marketer has to be familiar with the organizations specific
__________, __________, and __________ when contemplating buying decisions.
19.Hospitality marketers are unlikely to know the group dynamics that take
place during the buying decision process, but must learn the __________ and
__________ factors that shape the organizational environment.
20.Buyers exhibit different buying styles, which is why is marketers must know
their customers and adapt their tactics to known __________, __________,
interpersonal, and __________ factors.
21.The eight stages of the organizational buying process are defined as
__________.
22.The buying process begins when someone in the company recognizes a need
that can be met by acquiring a good or service. __________ __________ can be a
result of internal or external stimuli.
23.Determining the requirements of the product that would fulfill the problem is
called formulating the __________ __________ __________.
24.When the buyer compares hotels via trade directories, a computer search,
phoning properties directly, or visiting a site, we say they are conducting a
___________ __________.
25.The final step in the buying process is actually completed postpurchase.
__________ __________ of the product determines if the product met the buyers

specifications and if the buyer will purchase from the company again.
26.The group business market is often more __________ and requires more
__________ information than the consumer market.
27.Many group business markets will book more than a year in advance. During
this time __________ ___________ may develop so marketers must keep in
contact with the buyer to assure that they made the right decision in
choosing the sellers hotel.
28.The four main categories of group business are __________, __________
meetings, ___________ meetings, and __________ groups.
29.__________ attract large numbers but occur less frequently than __________.
30.The ___________ ___________ Exchange brings a set of standards and best
practices to all parties involved in the creation and implementation of a
meeting.
31.Conventions are a specialty market requiring extensive meeting __________.
__________ is the most popular month for conventions, followed by November,
September, and April.
32.Many hotels contract with independent __________ companies since their
premises are not large enough to store equipment and personnel.
33.Convention bureaus are __________ marketing organizations that help hotels
sign conventions and meetings.
34.The most important attributes of a destination for an association meeting
planner are __________ of hotel and facilities, ease of __________, __________ for
the attendees, and __________ costs.
35.The corporations major concern is that their meetings be __________ and
accomplish the companys objectives: to __________ their employees and
__________ enthusiasm.
36.Corporate __________ must be integrated into the meeting planning to ensure
that the right mix of benefits is delivered to the client.
37.__________ __________ rewards participants for achieving a goal usually for
both individual and team performance. For instance, employees of the best
performing region might be recognized and win a trip to a lavish international
destination.

38.Destination packages are moving away from in-house planners to __________

__________ since they specialize in purchasing __________ of airline seats and
hotel rooms and can put together packages more efficiently than in-house
planners.
39.SMERF stands for __________, __________, __________, __________ and __________
organizations. These are smaller specialty organizations that are price
sensitive.
40.SMERFs provide good __________ business during off-peak times because
groups prefer weekend and off-season bookings.
41.Many __________ are adding private rooms and hiring salespeople to gain their
share of the meetings market.
42.Taking a __________ approach is more effective than negotiating items
separately. By disclosing the budget first, the chef and planners can develop
alternatives within a specific price range.
43.It is commonplace for hotels to give complimentary room-nights for every
__________ room-nights that the group produces.
44.Most meeting planners want their bill within one __________ of the event and
__________ percent want it within two days.
45.One of the most important aspects creating a successful function is a
__________ meeting between the hotel staff and the meeting planner to review
event logistics.
46.Because of __________ the corporate rate qualification requirements have
been dropped and are now given to any businessperson that requests it.
47.The basic corporate rate is about _____ ______% below the hotels rack rate.
It often includes other benefits besides a discounted rate.
48.Although the corporate contract rate is a discounted rate, it is __________ than
the group rate.
49.In addition to developing hotel contracts, ___________ managers set ______
______ rates that specify the amount a company traveler can spend on food
and beverage.
50.Some corporations use in-house travel agencies, also known as __________,
which also represent other corporations, providing the advantage of

__________ __________.
51.Hotels compensate in-house travel agencies by straight __________, monthly
__________, or a combination of commissions and fees.