Chapter 4: Business Buying Behavior

Question 1

Derived demand

Answer 1

demand that springs from, or is derived from, a source other than the primary buyer of a product

Question 2

Fluctuating demand

Answer 2

demand that fluctuates sharply in response to a change in consumer demand.

Question 3

Joint demand

Answer 3

occurs when the demand for one product increases the demand for another.

Question 4

Producers

Answer 4

companies that purchase goods and services that they transform into other products

Question 5

resellers

Answer 5

companies that sell goods and services produced by other firms without materially changing them.

Question 6

Business-to-Government (B2G) markets

Answer 6

markets in which local, state, and federal governments buy products.

Question 7

Institutional markets

Answer 7

nonprofit organizations

Question 8

buying centers

Answer 8

groups of people within organizations who make purchasing decisions.

Question 9

users

Answer 9

people and groups within the organization that actually use the product.

Question 10

influencers

Answer 10

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

Question 11

gatekeepers

Answer 11

people who decide if and when you get access to members of the buying center.

Question 12

deciders

Answer 12

person who makes the final purchasing decision

Question 13

Stages in the B2B Buying Process

Answer 13

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 proposal (RFPs).
5. The proposals are evaluated and supplier(s) selected.
6. An order routine is established.
7. A postpurchase evaluation is conducted and the feedback provided to the vendor.

Question 14

Request for Proposal (RFP)

Answer 14

invitation to submit a bid to supply the good or service.

Question 15

Straight rebuy

Answer 15

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

Question 16

new-buy

Answer 16

occurs when a firm purchases a product for the first time.

Question 17

modified re-buy

Answer 17

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

Question 18

e-commerce

Answer 18

commerce conducted electronically.

Question 19

sell-side sites

Answer 19

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

Question 20

buy-side sites

Answer 20

one in which a business buys products from multiple sellers that go there to do business with the firm.

Question 21

B2B exchanges

Answer 21

e-commerce sites where multiple buyers and sellers go to find and do business with one another.

Question 22

B2B auctions

Answer 22

web-based auctions that occur between businesses (can be either sell or buy side).

Question 23

Reverse auctions

Answer 23

when the buyer lists what he or she wants to buy and also states how much he or she is willing to pay. Finished when at least one firm is willing to accept the buyer’s price.