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Why do organizations base purchase decisions on more data than individual consumers do?
ATheir purchases are always for much smaller quantities
BTheir purchases are exempt from every kind of tax rule
CTheir purchases are decided by one manager on his own
DTheir purchases often involve greater risk than consumer ones
Answer & Solution
Correct answer: D. Their purchases often involve greater risk than consumer ones
1. Purchases made by organizations often involve greater risk than consumer purchases.
2. For that reason businesses base decisions on more data and on rational decision-making.
3. The aim is to optimize value for the organization while minimizing risk.
4. Business buyers order in much larger quantities, not smaller ones.
5. Buying committees and departments are common, so the lone manager picture is wrong.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 11 "Creating Products and Pricing Strategies to Meet Customers' Needs", section 11.4 Buyer Behavior_
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