Chapter 3: B2B Marketing

Question 1

Business buyer behaviour

Answer 1

The buying behaviour of organisations that buy goods and services for use in the production of other goods and services that are sold, rented or supplied to others

Question 2

Business buying process

Answer 2

The decision process by which business buyers determine which goods and services their organisations need to purchase and then find, evaluate and choose among alternative suppliers and brands

Question 3

Derived demand

Answer 3

Business demand that ultimately comes from the demand for consumer goods

Question 4

Straight rebuy

Answer 4

A business buying situation in which the buyer routinely reorders something without modifications

Question 5

Modified rebuy

Answer 5

A business buying situation in which the buyer wants to modify product specifications, prices, terms or suppliers

Question 6

New task

Answer 6

A business buying situation in which the buyer purchases a product or service for the first time

Question 7

Buying centre

Answer 7

The decision-making unit of a buying organisation

Question 8

Users within buying centre

Answer 8

Members of the buying organisation who will actually use the purchased good or service

Question 9

Influencers within buying centre

Answer 9

People in an organisation’s buying centre who affect the buying decision; they often help define specifications and also provide information for evaluating alternatives

Question 10

Buyers within buying centre

Answer 10

People in an organisation’s buying centre who make an actual purchase

Question 11

Deciders within buying centre

Answer 11

People in an organisation’s buying centre who have formal or informal power to select or approve the final suppliers

Question 12

Gatekeepers within buying centre

Answer 12

People in an organisation’s buying centre who control the flow of information to others

Question 13

Stages of business buying process

Answer 13

1) Problem recognition
2) General need description
3) Product specification
4) Supplier search
5) Proposal solicitation
6) Supplier selection
7) Order-routine specification
8) Performance review

Question 14

Problem recognition within business buying process

Answer 14

The first stage of the business buying process, in which someone in the company recognises a problem or need that can be met by acquiring a good or a service.

Question 15

General need description within business buying process

Answer 15

The stage in the business buying process in which a buyer describes the general characteristics and quantity of a needed item.

Question 16

Product specification within business buying process

Answer 16

The stage of the business buying process in which the buying organisation decides on and specifies the best technical product characteristics for a needed item.

Question 17

Supplier search within business buying process

Answer 17

The stage of the business buying process in which the buyer tries to find the best vendors.

Question 18

Proposal solicitation within business buying process

Answer 18

The stage of the business buying process in which the buyer invites qualified suppliers to submit proposals.

Question 19

Supplier selection within business buying process

Answer 19

The stage of the business buying process in which the buyer reviews proposals and selects a supplier or suppliers

Question 20

Order-routine specification within business buying process

Answer 20

The stage of the business buying process in which the buyer writes the final order with the chosen supplier(s), listing the technical specifications, quantity needed, expected time of delivery, return policies and warranties.

Question 21

Elements of order-routine specification

Answer 21

• Technical specifications
• Quantity needed
• Expected time of delivery
• Return policies
• Warranties

Question 22

Performance review within business buying process

Answer 22

The stage of the business buying process in which the buyer assesses the performance of the supplier and decides to continue, modify or drop the arrangement.

Question 23

E-procurement

Answer 23

Purchasing through electronic connections between buyers and sellers - usually online

Question 24

Institutional markets

Answer 24

Schools, hospitals, nursing homes, prisons and other institutions that provide goods and services to people in their care

Question 25

Government markets

Answer 25

Governmental units - federal state and local - that purchase or rent goods and services for carrying out the main functions of government