Chapter 5

Question 1

Resellers

Answer 1

Marketing intermediaries that resell manufactured products without significantly altering their form

Question 2

Business-to-business (B2B) Marketing

Answer 2

The process of buying and selling goods or services to be used in the production of other foods and services for consumption by the buying organization, or for resale by wholesalers ad retailers

Question 3

Derived Demand

Answer 3

The linkage between consumer’s demand for a company’s output and its purchase of necessary inputs to manufacture or assemble that particular output

Question 4

North American Industry Classification System (NAICS) codes

Answer 4

A classification scheme that categorizes all firms into a hierarchical set of six-digit codes

Question 5

Request for proposals (RFP)

Answer 5

A process through which buying organizations invite alternative suppliers to bid on supplying their required components

Question 6

B2B Buying Process

Answer 6

Step 1: Need Recognition
Step 2: Product Specification
Step 3: RFP Process
Step 4: Proposal Analysis and Supplier Selection
Step 5: Order Specification (Purchase)
Step 6: Vendor Performance Assessment Using Metrics

Question 7

Buying Centre

Answer 7

The group of people typically responsible for the buying decisions in large organizations

Question 8

Initiator

Answer 8

The buying centre participant who first suggests buying the particular product or service

Question 9

Influencer

Answer 9

The buying centre participant whose view influence other members of the buying centre in making the final decision

Question 10

Decider

Answer 10

The buying centre participant who ultimately determines any part of or the entire buying decision - whether to buy, what to buy, how to buy or where to buy

Question 11

Buyer

Answer 11

The buyer centre participant who handles the paperwork of the actual purchase

Question 12

User

Answer 12

The person who consumes or uses the product or service purchased by the buying centre

Question 13

Gatekeeper

Answer 13

The buying centre participant who controls information or access to decision makers and influencers

Question 14

Organized Culture

Answer 14

Reflects the set of values, traditions, and customs that guides a firm’s employee’s behaviour

Question 15

Autocratic Buying Centre

Answer 15

A buying centre in which 1 person makes the decision alone, though there may be multiple participants

Question 16

Democratic Buying Centre

Answer 16

A buying centre in which the majority rules in making decisions

Question 17

Consultative Buying Centre

Answer 17

A buying centre in which 1 person makes the decision, but he or she solicits input from others before doing so

Question 18

Consensus Buying Centre

Answer 18

A buying centre in which all members of the team must reach a collective agreement the they cab support a particular purchase

Question 19

New buy

Answer 19

In a B2B setting, a purchase of a good or service for the 1st time; the buying decision is likely to be quite involved because the buyer or the buying organization does not have any experience with the item

Question 20

Modified buy

Answer 20

Refers to when the buyer has purchased a similar product in the past but has decided to change some specifications, such as the desired price, quality level, customer service level, and options

Question 21

Straight buy

Answer 21

Refers to when the buyer or buying organization simply buys additional units of product that had previously been purchased