MKTG 321 Chapter 8

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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

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

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

institutional markets

Organizations with charitable, educational, community, or other nonbusiness goals

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

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

Competitive factors economic factors political forces legal and regulatory forces technological changes socio cultural issues

Environmental influences

B2B e-commerce site

Online marketplaces where business buyers and sellers from around the world can exchange information, goods, services, ideas, and payments

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

Reseller markets

Intermediaries that buy finished goods and resell them for a profit

Types of Business Purchases

New Task Purchase, Straight Rebuy, Modified Rebuy

the buying center

The group of people within an organization who make business buying decisions

buying center

The people within an organization who make business purchase decisions

Parts of the buying center

User, influencer, buyer, decider, gatekeeper

reverse auction

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

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

Commodities and raw materials are typically purchased using which method of business buying?

description

Methods of Business Buying

description, inspection, sampling, negotiation

Influences of the Business Buying Decision Process

environmental, organizational, interpersonal, individual

government markets

have complex buying procedures due in part to their public accountability

reseller markets

includes wholesalers or retailers

age education level personality tenure position in organization

individual influences

cooperation conflict power relationships

interpersonal influences

objectives purchasing policies resources buying center structure

organizational influences

Primary Concerns of Business Customers

price, product quality, service, supplier relationships, sustainability

Online marketing efforts make the buying process far more efficient because it ________ and _______.

saves time and reduces costs


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