Chapter 8 - Business Markets and Buying Behavior
vendor analysis
A formal, systematic evaluation of current and potential vendors
modified rebuy
A new-task purchase is changed in the second or third time it is ordered or requirements are associated with a straight rebuy purchase are modified
d
After deciding to order replacement parts for aging machinery, the buyer for a construction company examines catalogs and trade publications looking for these parts. The buyer is at which stage in the business buying decision process? a. Problem recognition b. Product-supplier selection c. Product-supplier post-evaluation d. Product-supplier search and evaluation e. Product specification
sole sourcing
An organization's decision to use only one supplier
a lot
Because organizations demand derives from consumer demand, the demand for business products can fluctuate ...
description, inspection, sampling, and negotiation
Business buyers use several purchasing methods, including...
generally better informed about the products they purchase
Business customers differ from consumers in their purchasing behavior because they are...
a
Business customers today turn first to _____ to search for information and find sources for their product needs. a. the internet b. the NAICS c. B2B auction sites d. vendor sales representatives e. competitors
derived demand
Business demand that ultimately comes from (derives from) the demand for consumer goods.
larger, inputs, bulk, sellers, critical
Buyers tend to be: Fewer in number _________ in size Geographically concentrated - Spread out all over the world Purchasers of __________ rather than outputs Support services and total system often more important They buy bunch of products in __________ Place - Fewer middlemen - _________ go to buyers Promotion - Selling is ______________ - Advertisement is not as important
intermediaries
Buying products from producers Selling products for money Making profit
a
Demand for business products is characterized as derived. From what is the demand derived? a. Demand for consumer products b. Modified demand c. The business cycle d. Industrial demand e. Future product demand
derived demand
Demand for business products that stems from demand for consumer products
joint demand
Demand involving the use of two or more items in combination to produce a product
inelastic demand
Demand that is not significantly altered by a price increase or decrease
new task purchase
an organization makes an initial purchase of items to be used to perform new jobs or solve new problems
multiple sourcing
an organization's decision to use several suppliers
buyer types
people purchasing in and for various kinds of organizations
people, formal
Differences In the Buying Process The way businesses buy things is just more complicated - Takes longer - Lasts longer Involves more ____________ Often more ____________
environmental, organizational, interpersonal, individual
Factors that influence the buyer decision process
government markets
Federal, state, county or local governments that buy goods and services to support their internal operations and provide products to their constituencies Office supplies Health-care services Vehicles Heavy equipment Weapons Accountable to the public
b
In business markets, individuals or groups purchase products for one of three purposes. These purposes are a. wholesale, direct use, and use in producing other products. b. resale, direct use in producing other products, and use in daily business operations. c. resale, wholesale, and use in producing other products. d. use in daily business operations, wholesale, and resale. e. resale, wholesale, and direct use.
inelastic
Industrial demand is inelastic or elastic?
reseller markets
Intermediaries that buy finished goods and resell them for a profit They don't change characteristics of the products they handle Also exist for services and intangible products
governments and institutions
Not for profit 2 things they're most concerned about: Price Politics
straight rebuy
Occurs when a buyer purchases the same products routinely under the same terms of sale
saving time and reducing costs.
Online marketing efforts make the buying process more efficient by ...
b2b e-commerce site
Online marketplaces where business and buyers and sellers from around the world can exchange information, goods, services, ideas, and payments
larger
Orders by business customers tend to be much _________ than individual consumer sales
Industrial marketing Business to business marketing
Organizational marketing Also known as:
institutional markets
Organizations with charitable, educational, community, or other non-profit goals Churches, schools, charities, hospitals Often have different goals and fewer resources May use special marketing efforts to serve them
producers
People who make things or products Buying inputs and turning them into outputs Physical process
fluctuates, rational
What is the Difference In Demand for Business Markets Derived - Dependent on demand from other customer __________ more - Its either boom or bust Somewhat more ______________
sensitivity
When it comes to price, buyers have less price _________________- overall?
b
Which of the following statements about business buying is false? a. Business marketers must often sell their products in large quantities to make profits. b. Orders in business markets tend to be smaller than those placed in consumer markets. c. Business marketers prefer not to sell to customers who place small orders. d. Business purchases are usually made on the basis of contracts. e. Most business purchases are made by committee.
negotiation
With buyers, price is more subjective to what?
value analysis
an evaluation of each component of a potential purchase
gatekeepers
control the flow of information to and among individuals occupying other roles in the buying center
influencers
help develop specifications and evaluate alternative products for possible use
producer markets
individual business organizations that purchase products to make profits by using them to produce other products or using them in their operations Buyers of raw materials, as well as purchasers of semi-finished and finished items, used to make other products
buyers
selects suppliers and negotiates purchasing terms
deciders
these people choose the products
advertisement
what is more important for consumer customers, not business customers?