Chapter 6 - Business Markets & Business Buyer Behavior
__________ are members of the buying center who help define specifications and provide information for evaluating alternatives.
*A. Influencers B. Gatekeepers C. Users D. Deciders E. Buyers
Business markets have demand that __________.
*A. is inelastic B. is rigid at all times C. does not change for services D. is elastic E. does not change for products
A business buying situation in which the buyer reorders something without any modifications is known as a __________
*A. straight rebuy B. new task C. systems solution D. modified rebuy E. buying center
Systems Selling (or Solutions Selling)
buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation
Supplier Development
systematic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials for use in making products or reselling them to others
Business Buyer Behavior
the buying behavior of organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others
Business Buying Process
the decision process by which business buyers determine which products and services their organizations need to purchase and then find, evaluate, and choose among alternative suppliers and brands
Influencers
People in an organization's buying center who affect the buying decision; they often help define specifications and also provide information for evaluating alternatives.
The Law of Success
Success often leads to arrogance, and arrogance to failure.
Problem Recognition
The first stage of the business buying process in which someone in the company recognizes a problem or need that can be met by acquiring a good or a service.
When Eaton worked with the University of Notre Dame on its new engineering building to improve its energy efficiency and earn LEED credits, Eaton engaged with a number of people at Notre Dame to finalize the partnership and solidify terms and conditions associated with the agreement. Which of the following people in the buying center would have affected Notre Dame's buying decision (for example, define specs and provide information on evaluating alternatives)?
*a. Influencers b. Users c. Gatekeepers d. Buyers e. Deciders
When Eaton's customers became aware that they needed solutions for power management, energy savings, green technologies, and LEED certification, they were in which phase of the business buying process?
*a. Problem recognition b. Product specification c. Performance review d. Proposal solicitation e. General need description
Eaton sells only to businesses and focuses on the electrical, hydraulics, aerospace, and vehicle markets. When the economic crises hit in 2008, consumers began cutting back, and as a result, Eaton's customers needed to cut costs and scale back operations. This, in turn, impacted Eaton's sales, which is known as __________.
*a. derived demand b. a straight rebuy c. problem recognition d. buyer and seller dependencies e. complex buying process
Which of the following statements is not a difference between business markets and consumer markets?
A. Business demand is a derived demand. B. Buyers face more complex buying decisions. *C. The market is very small and limited. D. The buying process is more formalized. E. The buying decision involves more professionals.
__________ includes the final order with the chosen supplier or suppliers and lists other required items.
A. Performance review B. Vendor-managed inventory *C. Order-routine specification D. Product specification E. Supplier search
To do e-procurement, companies can conduct __________, in which they put their purchasing requests online and invite suppliers to bid for the business.
A. intranet link B. trading exchanges C. company buying site *D. reverse auctions E. extranet link
The rapidly expanding use of e-procurement in business-to-business deals provides several advantages; however, one of the disadvantages is __________.
A. it helps finds better supply sources B. it shaves transaction costs C. it reduces time between order and delivery D. it eliminates paperwork *E. it puts suppliers against one another
Developing product specifications follows __________ in the business buyer decision process.
A. proposal solicitation *B. general need description C. supplier selection D. supplier search E. performance review
Institutional markets are __________.
A. subject to frequent shifts in procurement personnel *B. characterized by low budget, captive patrons C. characterized by considerable documentation D. affected by organizational factors E. carefully watched by outside publics
Hospital purchasing agents should prefer __________.
A. to give contracts to the lowest bidder B. considerable documentation from suppliers *C. food vendors with low prices and quality products D. a negotiated contract E. open-bid purchasing
Derived Demand
Business demand that ultimately comes from (derives from) the demand for consumer goods.
Government Markets
Federal, state, county, or local governments that buy goods and services to support their internal operations and provide products to their constituencies
Order-Routine Specification
The stage of the business buying process in which the buyer writes the final order with the chosen supplier(s), listing the technical specifications, quantity needed, expected time of delivery, return policies, and warranties.
New Task
a business buying situation in which the buyer purchases a product or service for the first time
Straight Rebuy
a business buying situation in which the buyer routinely reorders something without any modifications
Modified Rebuy
a business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers
There are a number of influences on the buying organization and buying center that can impact how and what is purchased by a business. For Eaton's customers, the economic crises in 2008 would be classified as what type of influence?
a. Interpersonal b. Organizational c. Procedural d. Individual *e. Environmental
Through the years, Eaton has shifted from selling strictly components to solving its customers' problems with more tailored offerings. This is an example of _________.
a. modified rebuy b. non-modified rebuy c. straight rebuy d. new task *e. solutions selling
Buying Center
all the individuals and units that play a role in the purchase decision-making process
Users
members of the buying organization who will actually use the purchased product or service
Gatekeepers
people in an organization's buying center who control the flow of information to others
Deciders
people in an organization's buying center who have formal or informal power to select or approve the final suppliers
Buyers
people in an organization's buying center who make an actual purchase
Institutional Market
schools, hospitals, nursing homes, prisons, and other institutions that provide goods and services to people in their care
General Need Description
the stage in the business buying process in which a buyer describes the general characteristics and quantity of a needed item
Performance Review
the stage of the business buying process in which the buyer assesses the performance of the supplier and decides to continue, modify, or drop the arrangement
Proposal Solicitation
the stage of the business buying process in which the buyer invites qualified suppliers to submit proposals
Supplier Selection
the stage of the business buying process in which the buyer reviews proposals and selects a supplier or suppliers
Supplier Search
the stage of the business buying process in which the buyer tries to find the best vendors
Product Specification
the stage of the business buying process in which the buying organization decides on and specifies the best technical product characteristics for a needed item
B-to-B Digital and Social Media Marketing
using digital and social media marketing approaches to engage business customers and manage customer relationships anywhere, anytime
