Chapter 5

Question 1

Derived Demand

Answer 1

Demand for industrial products and services comes directly from (correlated to) the demand for consumer products and services

Demand derived from consumers

Question 2

Inelastic demand

Answer 2

Demand for product doesn’t change because of the increase or decrease in the prices. Consumers will still buy the same quantity
(Ex. Heat/hydro, car breaks)

Question 3

Fluctuating demand (AKA Seasonal demand)

Answer 3

Demand in industrial sector which rises and falls sharply in response to changing economic conditions and consumer spending habits
Ex. Winter clothing materials

Question 4

Main reason that organizations buy products or services

Answer 4

To help them achieve their objectives (usually profits)

Non-profits and govt agencies is to meet the needs of the groups they serve

Question 5

Organizational buying behaviour steps

Answer 5

1. Establish need
2. Identify, evaluate, and choose among alternative brands and suppliers

Question 6

Buying centre

Answer 6

Group of people in an organization who participate in the buying process

Question 7

Buying centre

Answer 7

Group of people in an organization who participate in the buying process

Question 8

3 types of organizational buying situations?

Answer 8

Straight rebuy, modified rebuy, new buy

Question 9

3 types of organizational buying situations?

Answer 9

Straight rebuy, modified rebuy, new buy