Chapter 4 – Business Buying Behavior Flashcards
What is ‘Derived Demand’?
Demand derived from a source other than the primary buyer of a product
What is ‘Fluctuating Demand’?
A small change in demand by consumers that can have a big effect throughout the chain of businesses that supply all the goods and services that produce it
What is ‘Joint Demand’?
Occurs when the demand for one product increases the demand for another
What are the 4 types of B2B customers?
- Producers
- Resellers
- Governments
- Institutions
What are ‘Buying Centers’?
Groups of people within organizations who make purchasing decisions
Who are the other players?
- Initiator
- User
- Influencer
- Gatekeeper
- Decider
Who are ‘Initiators’?
People within the organization who first see the need for the product
Who are ‘Users’?
People and groups within the organization that actually use the product
Who are ‘Influencers’?
People who may or may not use the product but have experience or expertise that can help improve the buying decision
Who are ‘Gatekeepers’?
People who will decide if and when you get access to members of the buying center
Who are ‘Deciders’?
Person who makes the final purchasing decision
What are the 7 stages in the ‘B2B Buying Process’?
- A need is recognized
- The need is described and quantified
- Potential suppliers are searched for
- Qualified suppliers are asked to complete responses to requests for proposals (RFPS)
- The proposals are evaluated and suppliers selected
- An order routine is established
- A post purchase evaluation is conducted and the feedback provided to the vendor
What are the types of B2B buying situations?
- Straight Rebuy
- New-Buy
- Modified Rebuy
What is a ‘Straight Rebuy’?
A situation in which a purchaser buys the same product in the same quantities from the same vendor
What is a ‘New-Buy’?
Occurs when a firm purchases a product for the first time
What is a ‘Modified Rebuy;
Occurs when a company wants to buy the same type of product it has in the past but make some modifications to it
What is a ‘Sell-side’ Site?
A site in which a single seller sells products to many different buyers
What is a ‘Buyer-side Site’?
A business buys products from multiple sellers that go there to do business with one another
What is a ‘B2B Auction’?
Web-based auctions that occur between businesses. Can be sell side or buy side
What is a ‘Reverse Auction’?
Buyer initiates the auction in order to find the cheapest supplier of a product and sellers then bid against one another
___ are an obvious starting place for companies, their executives and employees wanting to do the right thing
Laws & Regulations
_____ often plays a role when it comes to B2B laws & regultions
US Federal Trade Commission (FTC)
Companies that sell to the ___ must, by law, follow ____
- Government
- Very strict ethical guidelines
Companies are also adopting ___ that provide ___ about how their employees should ___
- Ethics codes
- General guidelines
- Behave
