Buyer behaviour: Business to business Flashcards
characteristics of business markets
- multiple buyers
- number of customers
- size of purchases
- geographiical concentraion
multiple buyers
products have to meet the rerquirementts of everyone involved in tthe company’s purchase decision
number of customers
oftem less customers
size of purchases
business-business products can dwarf consumer purchases
different types of demand
- derived demand
- inelastic demand
- flucttuaing demand
- joint demand
why is BTB demand derived
a business’s demand for goods and services comes either directly or indirectly from consumers demand
inelastic demand
it does nott matter if the prices fluctuate, business cusotmers still buy the same quantity
why is business demand subject to greaer fluctuations than consumer demand
- even small changes in consumer demand can creat large increases/decreases in business demand
when does joint demand occur
when 2 or more goods are necessary o create a productt
ttypes of business-business markes
- producers
- resellers
- organisations
producers
purchase products for production of goods and services tthat they sell tto make a profit
resellers
buy finished goods for the purpose of rersselling to other businesses
steps in tthe business buying decision
- problem recognition
- informaion search
- evaluation of alternatives
- product/supplier selection
- postt-purchase evaluation
problem recognition phase
- purchase requisittion/requestt made
2. buying center formed
nformation search phase
- product specifications developed
- potentital suppliers identified
- proposals and quotes obttained
