Chap 6- Business market and business buyer behavior Flashcards
Business buyer behavior
Buying behavior of the organization that goods and services for use in the production of other products and services that are sold, rented, or supplied to others
Business buyer process
Business buyers determine which products and services are needed to purchase and then find, evaluate, and choose among alternative brands
Supplier development
The systemic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and material for use in making products or reselling them to others
Straight rebuy
Buying situation in which the buyer routinely reorders something without any modification
Modified buy
Buying situation in which the buyer wants to modify product specifications, price, terms, or suppliers
New task
Buying situation in which the buyer purchases a product or service for the first time
System selling
Buying a complete solution to a problem from a single seller
Buying center
All the individuals and units that play a role in the business purchase decision making process
Users
Those that will use the product and or service
Influencer
They help define specifications and provide information for evaluating alternatives
Deciders
Have formal or informal power to select and approve final suppliers
Buyers
Have formal authority to select the supplier and arrange terms of purchase
Gatekeeper
Controls the flow of information
Problem recognition
This occurs when someone in the company recognizes a problem or a need
Value analysis
An approach to cost reduction where components are studied to determine if they can be redesigned, standardized or made with less costly methods of production
Production specification
This describes the technical criteria
General need description
This describes the characteristics and quality of a needed item
Supplier search
Involves compiling a list of qualified suppliers to find the best vendors
Proposal solicitation
The process of requesting proposals from qualified suppliers
Supplier selection
The buying center creates a list of desired supplier attributes and negotiates with preferred suppliers for favorable terms & conditions
Performance review
It involves a critique of supplier performance to the order routine specifications
Order routine specifications
The final order with the chosen supplier and list of all the specifications and terms of the purchase
Institutional markets
These consist of schools, hospital, nursing home and prisons that provide goods and services to people in their care
Government market
They tend to favor domestic suppliers that require them to submit bids and normally award the contract to the lowest bidder
