B2B Flashcards
What is inelastic demand?
A company buys the same amount of a product regardless of if the price fluctuates
What is fluctuating demand?
A company has large spikes in demand before it falls again, e.g. seasonal products such as farms
What is joint demand?
Various components fit together to make the final product, so if one piece of a component is limited the demand for other products will lower
What is a straight re-buy?
Company has regular shipments of a product as it is constantly used
What is a modified re-buy?
Firm shops for more specific/ specialised item, often involves more people in the decision
What is a new task buy?
Uncertainty and risk escalate as you are starting from scratch. Requires more research
What is crowd sourcing?
A company finds that its both cost efficient and productive to call on others to solve problems the company itself can’t handle
What is reverse marketing?
Buyers try to find suppliers capable of producing specific needed products and then attempt to sell the idea to suppliers
