Chapter 2 Flashcards
New-Task Buying Situation
organization decision makers perceive the problem or need as totally different from previous experiences; therefore, they need a significant amount of information to explore alternative ways of solving the problem and searching for alternative suppliers
Extensive Problem Solving
A stage of decision making operated in when confronting a new-task buying situation; buying influentials and decision makers lack well-defined criteria for comparing alternative products and suppliers, but they also lack strong predispositions toward a particular solution
Strategic New-Task Decisions
these purchasing decisions are of extreme importance to the firm strategically and financially
Straight Rebuy
evaluation of new alternative solutions is unnecessary and unlikely to yield appreciable improvements
Routine Problem Solving
decision process organizational buyers employ in the straight rebuy; apply well-developed choice criteria to the purchase decision
Operating Resources
the goods and services needed to run the business, such as computer and office supplies, maintenance and repair items, and travel services
Modified Rebuy
organizational decision makers feel they can derive significant benefits by reevaluating alternatives
Limited Problem Solving
best describes the decision making process for the modified rebuy
Complex Modified Rebuy
involves a large set of choice alternatives and poses little uncertainty
TCO (Total Cost of Ownership)
considers the full range of costs associated with the purchase and use of a product or service over its complete life cycle
Acquisition Costs
include not only the selling price and transportation costs, but also the administrative costs of evaluating suppliers, expediting orders, and correcting errors in shipments or delivery
Possession Costs
include financing, storage, inspection, taxes, insurance, and other internal handling costs
Usage Costs
associated with ongoing use of the purchased product, such as installation, employee training, user labor, and field repair, as well as product replacement and disposal costs
Reverse Auction
involves one buyer who invites bids from several prequalified suppliers who face off in a dynamic, real-time, competitive bidding process.
Global Account Management Program
treas a customer’s worldwide operations as one integrated account, with coherent terms for pricing, service, and product specifications
