Ch. 7: Business Markets & Buying Behavior
Multiple Sourcing
An organization's decision to use several suppliers
New-Task Purchase
An organization's initial purchase of an item to be used to perform a new job or solve a new problem
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
Commodities and raw materials are typically purchased using which method of business buying?
Description
Product Specifications
Written statements describing a product's necessary characteristics, standards of quality, and other information essential to identifying the best supplier for the needed product
Vendor Analysis
A formal, systematic evaluation of current and potential vendors
Modified Rebuy Purchase
A new-task purchase that is changed on subsequent orders or when the requirements of a straight rebuy purchase are modified
Straight Rebuy Purchase
A routine purchase of the same products under approximately the same terms of sale by a business buyer
Reciprocity
An arrangement unique to business marketing in which two organizations agree to buy from each other
Value Analysis
An evaluation of each component of a potential purchase
North American Industry Classification System (NAICS)
An industry classification system that generates comparable statistics among the United States, Canada, and Mexico
Sole Sourcing
An organization's decision to use only one supplier
Online marketplaces where buyers and sellers can exchange information, goods, services, ideas, and payments are best described as
B2B E-Commerce Sites
Government Markets
Federal, state, county, or local governments that buy goods and services to support their internal operations and provide products to their constituencies
What market may have complex buying procedures due in part to their public accountability?
Government Markets
Producer Markets
Individuals and business organizations that purchase products to make profits by using them to produce other products or using them in their operations
A price increase or decrease does not significantly alter demand for a product with
Inelastic Demand
Reseller Markets
Intermediaries that buy finished products and resell them for a profit
ACME Corp. has ordered widgets from Wiley Widgets several times before, but now it would like Wiley Widgets to offer a lower per-unit price in exchange for a larger order. ACME is using what type of business purchase?
Modified Rebuy Purchase
B2B E-Commerce Sites
Online marketplaces where buyers and sellers from around the world can exchange information, goods, services, ideas, and payments
Institutional Markets
Organizations with charitable, educational, community, or other nonbusiness goals
To estimate the purchase potential of business customers, a marketer must find a relationship between a variable available in industrial classification data, such as number of employees, and the size of
Potential customers' purchases
Gorton's buys large amounts of fish to use in its frozen dinners and dinner components. Gorton's belongs in which of the following markets?
Producer Market
What market includes wholesalers or retailers?
Reseller Markets
When a business buyer invites vendors to bid to supply a specified good or service in competition with each other, with the lowest bidder winning the right to sell to the buyer, this is best described as
Reverse Auction
Purchasing agents at ACME Corp. are looking in company files and trade directories, websites, contacting suppliers for information, soliciting proposals from known vendors, and examining various online and print publications. They are in which of the following stages of the buying decision process?
Searching for and evaluating potential products and suppliers
The group of people within an organization who make business buying decisions are best described as
The Buying Center
Buying Center
The people within an organization who make business purchase decisions
Business (Organizational) Buying Behavior
The purchase behavior of producers, government units, institutions, and resellers
Examining quality, design, materials, and possibly item reduction or deletion to acquire the product in the most cost-effective way is best described as
Value Analysis
Online marketing efforts make the buying process far more efficient because it ________ and _______.
saves time; reduces costs