Evaluate Criteria Used in purchase Decision | | Functional Role in Organization | | | | Purchasing | Management | Engineering | Operations | Vendor offers broad line | X | X | X | X | Many product options available | X | X | X | X | Ease of maintenance of equipment | | | X | X | Competence of service techniques | | | X | X | Overall quality of service | | X | X | X | Product warranty | X | X | X | X | Delivery (lead time) | X | | X | X | Time needed to install equipment | | | X | | Construction costs | | | | X | Vendor has lowest price | | | | X | Financial stability of vendor | | X | | | Vendor willing to negotiate price | | X | X | | Vendor reputation for quality | | X | | | Salesperson competence | X | X | X | X | Compatibility with equipment | | | X | X | Available computer interface | X | X | X | X | Eva Rosalina/01120120099

1. Define loyalty as you understand it from the text. Does Paccar with its Kenworth and Peterbilt trucks create loyalty? Explain. * Loyalty the behavior of the customers that tend to stick with one brand or product. * Yes, because their high quality products are reliable and they also have a strong brand image that creates loyalty of their customers. 2. What type of buying process (straight rebuy, modified rebuy, new task) is the decision to buy Kenworth for Herbert Schmidt? Would the buying process be the same for all carriers? Explain. * I think it is straight rebuy. It was stated “It’s Kenworth or nothing”. Reliability is all that matters for the company, and the fact that the company has been loyal for the past 20 years means that the time needed to make a decision to purchase is short, and the size of DMU is not large.

3. Using all the possible sources of information, including the case, the internet, OTR truck dealers, develop what you think the decision-making unit looks like for a truck purchase. Does its size depend on the size of the company or other factors? Explain. * The size doesn’t depend on the company size. The decision-making unit for a truck purchase would be: * Initiator suggesting to purchase a truck * Gatekeeper controlling the information flow * Influencers asses the result with their own opinions * Buyers have the contracting responsibility * Users use the purchased trucks

4. Using all possible sources of information, including the case, the internet, OTR truck dealers, complete the following information in Table A. What implications does this have for Paccar and other truck companies in terms of their marketing efforts? 5. Explain the role of reference groups for Paccar and its trucks. * Reference groups guide the company to meet customers’ needs and expectation. 6. Describe the differences you would expect between a company that owned their own trucks versus those that lease. Relate these to internal and external influences shown in Figure 19-1. * The company that own their own trucks experiences internal influences, while the company who leases is affected by both external and internal influences 7. How does Paccar’s hybrid offering fit into its current brand image? * The company recognizes itself as a leader; increase reputations where its trucks will be considered as a leader in quality. Also by increasing the customers’ perception that Paccar is leading in technology, expertise in trucking industry as it will be regarded as a company that recognize customers expenses in fuels by introducing fuel-efficient-vehicles and environmental friendly vehicles.