chapter 1 Flashcards
total offering
created by a partnership between buying organization and the selling/marketing organization. (core product + other value added services or enhancement)
ex: product + delivery schedule or financing terms, disposal methods, etc.
evaluated price
total cost of owning and using a product
includes transportation, carrying costs, flexibility to upgrade, installation
value
the sum of all the benefits that a customer receives in the process of buying and using a product or services minus the costs involved.
bullwhip effect
It refers to increasing swings in inventory in response to shifts in customer demand as one moves further up the supply chain
over or under exaggerated demand
volatility
spike changes in cost
- not as many changes in price in consumer markets
- occurs more in business markets
derived demand
the demand experienced by the chain of suppliers and producers that contribute to the creation of the total offering
Ex: the demand at pearl street (manufacture) is derived from drunk fisherman (consumers)
discontinuous demand
quantity demand in the market makes large changes up or down in response to changes in market conditions. The transition from one market state to another occurs in large increments rather than small incremental changes in demand
leverage
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outsourcing`
obtain (goods or a service) from an outside or foreign supplier, especially in place of an internal source.
porters value chain
the chain of activities that creates something of value for targeted customers
B2B market structure
geographically concentrated
relatively few buyers
oligopolistic competition
consumer products
standardized
service, delivery kind of important
purchase for personal use
B2B products
technically complex
service and delivery is crucial
purchased for other than personal use
consumer buyer behavior
individual purchasing
family involvement
social or psychological motives
B2B buyer behavior
professionally trained purchasing personnel
functional involvement at many levels
task motives
