Business Markets and Business Buyer Behavior

Question 1

Business buyer behavior

Answer 1

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

Question 2

Business buying process

Answer 2

The decision process by which business buyers determine which products and services their organizations need to purchase and the find, evaluate, and choose among alternative suppliers and brands

Question 3

Business buyer behavior

Answer 3

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

Question 4

Derived demand

Answer 4

Business demand that ultimately comes from (derives from) the demand for consumer goods

Question 5

Supplier development

Answer 5

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

Question 6

Straight rebuy

Answer 6

A business buying situation in which the buyer routinely reorders something without any modifications

Question 7

Modified rebuy

Answer 7

A business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers

Question 8

New task

Answer 8

A business buying situation in which the buyer purchases a product or service for the first time

Question 9

System selling (or solutions selling)

Answer 9

Buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation

Question 10

Buying center

Answer 10

All the individuals and units that play a role in the purchase decision-making process

Question 11

Users

Answer 11

Members of the buying organization who will actually use the purchased product or service

Question 12

Influencers

Answer 12

People in an organization’s buying center who affect the buying decision; they often help define specifications and also provide information for evaluating alternatives

Question 13

Buyers

Answer 13

People in an organization’s buying center who make an actual purchase

Question 14

Deciders

Answer 14

People in an organization’s buying center who have formal or informal power to select or approve the final suppliers

Question 15

Gatekeepers

Answer 15

People in an organization’s buying center who control the flow of information to others

Question 16

Problem recognition

Answer 16

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

Question 17

General need description

Answer 17

The stage in the business buying process in which a buyer describes the general characteristics and quantity of a needed item

Question 18

Product specification

Answer 18

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

Question 19

Supplier search

Answer 19

The stage of the business buying process in which the buyer tries to find the best vendors

Question 20

Proposal solicitation

Answer 20

The stage of the business buying process in which the buyer invites qualified suppliers to submit proposals

Question 21

Supplier selection

Answer 21

The stage of the business buying process in which the buyer reviews proposals and selects a supplier or suppliers

Question 22

Order-routine specification

Answer 22

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

Question 23

Performance review

Answer 23

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

Question 24

E-procurement

Answer 24

Purchasing through electronic connections between buyers and sellers – usually online

Question 25

Institutional market

Answer 25

Schools, hospitals, nursing homes, prisons, and other institutions that provide goods and services to people in their care

Question 26

Government market

Answer 26

Government units – federal, state, and local – that purchase or rent goods and services for carrying out the main functions of government