Chapter 6 Flashcards
Business and Organizational Customers:
Any buyers who buy for resale or to produce other goods and services. Types include:
Producers of goods and services
Intermediaries
Government units
Nonprofit organizations
Purchasing Specifications:
A writter description of what the firm wants to buy.
ISO 9000:
A way for a supplier to document its quality procedures according to internationally recognized standards.
Purchasing Managers:
Buying specialists for their employers and, in large companies, usually specializing by product area and are real experts.
Multiple Buying Influence:
Several people play a part in making a purchase decision (perhaps even top management for example). Possible buying influences include:
- Users - Perhaps production line workers or their supervisors
- Influencers - Perhaps engineering or R&D people who help write specifications or supply information for evaluating alternatives
- Buyers - The purchasing managers who have the responsibility for working with suppliers and arranging the terms of the sale
- Deciders - the people in the organization who have the power to select or approve the supplier; often a purchasing manager but perhaps top management for larger purchases
- Gatekeepers - people who control the flow of information within the organization; perhaps a purchasing manager who shields users or other deciders. Can also include receptionists, secretaries, research assistants, and others who influence the flow of information about potential purchases.
Buying Center:
All the people who participate in or influence a purchase. Different people may make up a buying center from one situation to the next.
Vendor Analysis:
A formal rating of suppliers on all relevant areas of price and performance.
Requisition:
A request to buy something.
New-Task Buying:
Occurs when a customer organization has a new need and wants a great deal of information. Can involve setting product specifications, evaluating sources of supply, and establishing an order routine that can be followed in the future if results are satisfactory. Multiple buying influence is most often found in new-task buying.
Straight Rebuy:
A routine reprchase that may have been made many times before.
Modified Rebuy:
The in-between process where some review of the buying situation is done, though not as much as in new-task buying.
Competitive Bid:
The terms of sale offered by the suppliers in response to the purchase specifications posted by a buyer.
Just-In-Time-Delivery:
Reliably getting products there just before the customer needs them.
Negotiated Contract Buying:
Agreeing to contracts that allow for changes in the purchase arrangements.
Outsource:
Contracting with an outside firm to produce goods or services rather than to produce them internally.
