Chapter 2 Flashcards
Business-to-business (B2B)
business interaction between two organizations
Business-to-consumer (B2C)
interaction between a consumer and buyer
Buyer
person responsible for making purchase or org purchase
Salesperson
responsible for selling to buyer
Supplier/vendor
selling organization
Who represents the largest group of buyers?
consumers
Retail buyers
purchase already manufactured products and services, resell them in stores
Direct procurement
purchase of products and services used to create the product or service produced to end-users
Indirect procurement
purchase of products or services used in company operations
Value
a comparison of benefits to costs (money, time, effort, and mental focus)
Situation repair
when something is broken and requires a repair or replacement
Situation improvement
when an opportunity resulting in business improvement exists
Situation continuance
when the buyer does not see the value in changing and elects to remain the status quo
Feature
a characteristic or attribute of a product or service
Benefit
the value of a product or service feature that the buyer perceives or experiences
Multi-attribute model
weighted sum of buyer’s preferences for product or brand attributes
• Common criteria includes price, quality, satisfaction, and ability to delivery on time
Business decision process
reflects the buyer’s journey that begins with the recognition of a need for a product or service and ends w/ an evaluation of the performance of the supplier
