Ch.5

Question 1

Business-to-business marketing

Answer 1

The marketing of products and services to companies, governments, or not-for-profit organizations for use in the creation of products and services that they can produce and market to others.

Question 2

Organizational
Buyers

Answer 2

Those manufacturers wholesalers, retailers, service companies, not-for-profit organizations, and government agencies that buy products and services for their own use or for resale. Does not include the consumer.

Question 3

Organization buyers divided into three markets

Answer 3

Industrial, reseller, and government

Question 4

Industrial markets

Answer 4

Reprocess a product or service they buy before selling it again to the next buyer.

Question 5

Reseller markets

Answer 5

Wholesalers and retailers that buy physical products and resell them again without any reprocessing are resellers.

Question 6

Government markets

Answer 6

The federal, state, and local agencies that buy goods and services for the constituents they serve.

Question 7

North American Industry Classification System (NAICS)

Answer 7

Provides common industry definitions for Canada, Mexico and the United States, which makes it easier to measure economic activity in the three member countries of the United States-Mexico-Canada Agreement (USMCA)

Question 8

Characteristics of organizational buying

Answer 8

Question 9

Derived Demand

Answer 9

The demand for industrial products and services that is driven by, or derived from, the demand for consumer products and services.

Question 10

Organization buying criteria

Answer 10

The objective attributes of the supplier’s products and services and the capabilities of the supplier itself. Most commonly used criteria are price, quality, delivery schedule, technical capability, warranties and claim policies, past performance, and production facilities and capacity.

Question 11

Supplier development

Answer 11

The deliberate effort by organizational buyers to build relationships that shape a supplier’s products, services, and capabilities to fit a buyer’s needs and those of its customers.

Question 12

Supply partnership

Answer 12

When a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the ultimate consumer.

Question 13

Organizational buying behavior

Answer 13

The decision-making process that organizations use to establish the need for products and services and identify, evaluate, and choose among alternative brands and suppliers.

Question 14

Stages of organizational buying process

Answer 14

Question 15

Buying center

Answer 15

The group of people in an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision.

Question 16

5 roles in the buying center

Answer 16

Users, influencers, buyers, deciders, and gatekeepers.

Question 17

Buying situations and the buying center

Answer 17

Question 18

Buy classes

Answer 18

Consist of three types of organizational buying situations: straight rebuy, new buy, and modified rebuy.

Question 19

Online buying in organizational markets prominent for three reasons

Answer 19

1. Organizational buyers depend heavily on timely supplier information that describes product availability, technical specifications, application uses, price, and delivery schedules.
2. This technology has been shown to substantially reduce buyer order processing costs.
3. Business marketers have found that digital technology reduces marketing costs, particularly sales and advertising expense, and broadens their potential customer base for many types of products and services.

Question 20

e-marketplaces

Answer 20

Online trading communities that bring together buyers and supplier organizations to make possible the real-time exchange of information, money, products, and services.

Question 21

Traditional auction

Answer 21

In an e-marketplace, an online auction in which a seller puts up an item for sale and would-be buyers are invited to bid in competition with each other.

Question 22

Reverse auction

Answer 22

In an e-marketplace, an online auction in which a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other.