6. Business Buying Behavior Flashcards
Business buyer behavior
The buying behavior of organizations that buy goods and services for use in the production of other products an 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.
Derived demand
Business demand that ultimately comes from (derives from) the demand for consumer goods.
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.
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.
Influencers
People in an organization’s buying center who affect the buying decision; they often help define specifications and also provide info for evaluating alternatives.
Buyers
People in an organization’s buying center who make an actual purchase.
Deciders
People in an organization’s buying center who have formal or informal power to select or approve the final suppliers.
Gatekeepers
People in an organization’s buying center who control the flow of info to others.
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.
General need description
The stage in BBP in which a buyer describes the general characteristics and quantity of a needed item.
Product specification
The stage of the BBP in which the buying organization decides on and specifies the best technical product characteristics for a needed item.
Supplier search
The stage of the BBP in which the buyer tries to find vendors.
Proposal solicitation
The stage of the BBP in which the buyer invites qualified suppliers to submit proposals.
Supplier selection
The stage of the BBP in which the buyer reviews proposals and selects a supplier or suppliers.
Order-routine specification
The stage of the BBP in which the buyer writes the final order with the chosen supplier(s), listing the technical specifications, quantity needed, expected time delivery, return policies, and warranties.
Performance review
The stage of the BBP in which the buyer assesses the performance of the supplier and decides to continue, modify, or drop the arrangement.
E-procurement
Purchasing through electronic connections between buyers and sellers - usually online.
Government market
Governmental units—federal, state, and local—that purchase or rent goods
and services for carrying out the main
functions of government.
Institutional market
Schools, hospitals, nursing homes, prisons, and other institutions that provide goods and services to people
intheir care.
E-procurement
Purchasing through economic relations between buyers and sellers - usually online. Can be reverse auction, online trading exchanges, company buying sites, extranet links, etc.
