Chapter 4 – Business Buying Behavior

Question 1

What is ‘Derived Demand’?

Answer 1

Demand derived from a source other than the primary buyer of a product

Question 2

What is ‘Fluctuating Demand’?

Answer 2

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

Question 3

What is ‘Joint Demand’?

Answer 3

Occurs when the demand for one product increases the demand for another

Question 4

What are the 4 types of B2B customers?

Answer 4

• Producers
• Resellers
• Governments
• Institutions

Question 5

What are ‘Buying Centers’?

Answer 5

Groups of people within organizations who make purchasing decisions

Question 6

Who are the other players?

Answer 6

• Initiator
• User
• Influencer
• Gatekeeper
• Decider

Question 7

Who are ‘Initiators’?

Answer 7

People within the organization who first see the need for the product

Question 8

Who are ‘Users’?

Answer 8

People and groups within the organization that actually use the product

Question 9

Who are ‘Influencers’?

Answer 9

People who may or may not use the product but have experience or expertise that can help improve the buying decision

Question 10

Who are ‘Gatekeepers’?

Answer 10

People who will decide if and when you get access to members of the buying center

Question 11

Who are ‘Deciders’?

Answer 11

Person who makes the final purchasing decision

Question 12

What are the 7 stages in the ‘B2B Buying Process’?

Answer 12

1. A need is recognized
2. The need is described and quantified
3. Potential suppliers are searched for
4. Qualified suppliers are asked to complete responses to requests for proposals (RFPS)
5. The proposals are evaluated and suppliers selected
6. An order routine is established
7. A post purchase evaluation is conducted and the feedback provided to the vendor

Question 13

What are the types of B2B buying situations?

Answer 13

• Straight Rebuy
• New-Buy
• Modified Rebuy

Question 14

What is a ‘Straight Rebuy’?

Answer 14

A situation in which a purchaser buys the same product in the same quantities from the same vendor

Question 15

What is a ‘New-Buy’?

Answer 15

Occurs when a firm purchases a product for the first time

Question 16

What is a ‘Modified Rebuy;

Answer 16

Occurs when a company wants to buy the same type of product it has in the past but make some modifications to it

Question 17

What is a ‘Sell-side’ Site?

Answer 17

A site in which a single seller sells products to many different buyers

Question 18

What is a ‘Buyer-side Site’?

Answer 18

A business buys products from multiple sellers that go there to do business with one another

Question 19

What is a ‘B2B Auction’?

Answer 19

Web-based auctions that occur between businesses. Can be sell side or buy side

Question 20

What is a ‘Reverse Auction’?

Answer 20

Buyer initiates the auction in order to find the cheapest supplier of a product and sellers then bid against one another

Question 21

___ are an obvious starting place for companies, their executives and employees wanting to do the right thing

Answer 21

Laws & Regulations

Question 22

_____ often plays a role when it comes to B2B laws & regultions

Answer 22

US Federal Trade Commission (FTC)

Question 23

Companies that sell to the ___ must, by law, follow ____

Answer 23

• Government

- Very strict ethical guidelines

Question 24

Companies are also adopting ___ that provide ___ about how their employees should ___

Answer 24

• Ethics codes
• General guidelines
• Behave

Question 25

The Business Marketing Association has also developed a ___ that discourages _____ and encourages ____

Answer 25

• Code of Ethics
• Bribery and other practices, such as disparaging a competitor’s products unfairly
• Treating one’s suppliers equitably

Question 26

What is the ‘Acceleration Effect’

Answer 26

Small changes can have big results

Question 27

____ among the people making the buying decision often have an impact on the products chosen, good or bad

Answer 27

Interpersonal Factors

Question 28

Firms in the same industry tend to ___ in the same ____

Answer 28

• Cluster

- Geographic Area

Question 29

Why does clustering occur?

Answer 29

• The resources these firms need are located in some areas and not others
• Sellers want to be close to their buyers
• Buyers want to be close to their suppliers because it can help them get inventory faster

Question 30

B2B e-commerce was __ to take hold than B2C e-commerce

Answer 30

Slower

Question 31

What effect has e-commerce had on B2B sellers?

Answer 31

They have a limited ability to raise their prices

Question 32

How do B2B sellers avoid e-commerce price wars?

Answer 32

Some products refuse to sell their products directly online or put prices on them