chapter 6

Question 1

define business buyer behavior

Answer 1

• buying behavior of organizations that buy goods/services to use in production of other products/services

Question 2

define the business buyer process

Answer 2

process where business buyers determine which products/services are needed to purchase, (find, evaluate, choose among alternative brands)

Question 3

differences between business markets and consumer markets

Answer 3

• market structure
• demand
• nature of the buying unit
• types of decisions
• decision process

Question 4

explain the differeces between buisness markets and consumer markets

Answer 4

Business markets (demand &market stucture)
1. fewer but larger buyers
2. derived demand–> ad campaigns to promote final product
3. inelastic demand–> demand is not affected much by price changes
4. fluctuating demand
Nature of the buying unit
5. more decision participants
6. more professional purchasing effort
7. more buyer & seller interaction

Question 5

explain the buisness buyer decision process

Answer 5

• more complex buying decision’s than consumers buyers
• longer & more formalized
• buyer and seller are more dependent on each other

Question 6

define supplier development

Answer 6

• systematic development of networks of suppliers-partners to ensure an appropriate and dependable supply of products to use in making products/reselling.

Question 7

factors influencing business buyer behavior

Answer 7

• THE ENVIRONMENT–>
  –> marketing stimuli: product, price, place, promotion
  –> other stimuli: economic, technological, political, cultural, competittive
• These enviromental factors, interpersonal, individual factors affect THE BUYING CENTER &BUYING DECISION PROCESS

Question 8

Major types of buying situations

Answer 8

1. straight rebuy: reorders something without modification
2. modified rebuy: modify product
3. new task–> buyer purchases a product/service for first time
4. systems selling–> buying a complete solution to a problem from single seller
5. solutions selling

Question 9

participants in the business buying process

Answer 9

• users people in org using product
• influencers: evaluate alternatives, help define specifications
• buyers: select supplier+arrange purchase
• deciders:
• gatekeepers: control flow of info to others

Question 10

define buying center

Answer 10

consists of all the individuals and units that play a role in
the business purchase decision-making process

Question 11

The major influences on buisness buying behavior

Answer 11

1. environmental: economy, supply conditions , tech, competition, politics
2. organizational: objectives, strategies, structure, systems and procedures
3. interpersonal: influence, expertise, authority, dynamics
4. individual: age/education, job position, personality, income

Question 12

List the steps in the buisness buying decision process

Answer 12

1. problem recognition
2. general need description
3. product specification
4. supplier search
5. proposal solicitation
6. supplier selection
7. order-routine specification
8. performance review

Question 13

describe product recognition

Answer 13

• someone in company recognizes a problem/need
  –> internal
  –> external stimuli

Question 14

describe general need description

Answer 14

describes the characteristics and quantity of the needed
item.

Question 15

describe product specification

Answer 15

describes the technical criteria.

Question 16

describe supplier search

Answer 16

list of qualified suppliers to find the best
vendors.

Question 17

describe Order-routine specifications

Answer 17

final order with the chosen supplier
and lists all of the specifications and terms of the purchase

Question 18

describe performance review

Answer 18

involves a critique of supplier performance to the order-
routine specifications.