chapter 6: business and buyer behavior

Question 1

business buyer behavior

Answer 1

buying behavior of organisations that buy goods and services for use in the production of other products and services that are sold, rented or supplied to others

Question 2

business buying process

Answer 2

decision process by which buyers determine which products and services their organizations need to purchase and then find, evaluate and choose among alternative suppliers and brands

Question 3

what is a similarity between business market and consumer markets?

Answer 3

both involve people who assume buying roles and make purchase decisions to satisfy needs

Question 4

What is the main difference between business markets and consumer markets?

Answer 4

The main difference is in structure and demand, the nature of the buying unit and the types of decisions and decision process involved

Question 5

Market structure and demand

Answer 5

• business marketer deals with fewer but larger buyers
• many business markets have inelastic and more fluctuating demand
• total demand for many business products is not much affected by changes in price

Question 6

Derived demand

Answer 6

business demand that ultimately comes from the demand for consumer goods

Question 7

supplier development

Answer 7

systematic development of networks of supplier partners to ensure an appropriate and dependable supply of products and materials for use in making products or reselling them to others

Question 8

types of marketing stimuli

Answer 8

the marketing mix (product, price, place and promotion)

Question 9

Other main stimuli

Answer 9

Economic, technological, political, cultural and competitive

Question 10

What does buying activity consist on

Answer 10

• the buying center composed by all the people involved in the buying decision
• the buying decision process

Question 11

straight rebuy

Answer 11

the buyer routinely reorders something without modifications

Question 12

Modified rebuy

Answer 12

buyer wants to modify product specifications, prices, terms or suppliers

Question 13

new task

Answer 13

buyer purchases a product or service for the first time

Question 14

system selling

Answer 14

buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation

Question 15

buying center

Answer 15

all the individuals and units that play a role in the purchase decision-making process (users, influencers, buyers, deciders, gatekeepers)

Question 16

users

Answer 16

members who will actually use the purchased product or service

Question 17

influencers

Answer 17

people who affect the buying decision; often help define specifications and provide information for evaluating alternatives

Question 18

buyers

Answer 18

people who have formal authority to select the supplier and arrange terms of purchase

Question 19

Deciders

Answer 19

those who have formal or informal power to select or approve the final suppliers

Question 20

gatekeepers

Answer 20

people in an organisations buying centre who control the flow of information to others

Question 21

major influences on business buyers

Answer 21

business buyers are heavily influenced by factors in the current and expected economic environment. The business buyer must watch the factors and determine how they will affect the buyer

Question 22

business buyer decision process steps

Answer 22

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 23

problem recognition

Answer 23

the company recognizes a problem or need that can be met by acquiring a good or service

Question 24

general need description

Answer 24

stage in which the buyer describes the general characteristics and quantity of a needed item

Question 25

product specification

Answer 25

the buying organisation decides on and specifies the best technical product characteristics for a needed item

Question 26

product value analysis

Answer 26

approach to cost reduction in which components are studied carefully to determine if they can be redesigned, standardized or made by less costly methods of production

Question 27

Supplier search

Answer 27

buyer tries to find the best vendors (buyer makes a list of qualified suppliers)

Question 28

Proposal solicitation

Answer 28

buyer invites qualified suppliers to submit proposals

Question 29

supplier selection

Answer 29

buyer reviews proposals and selects a supplier or suppliers

Question 30

order routine specification

Answer 30

stage in which the buyer writes the final order with the chosen supplier(s) listing the technical specifications, quantity needed, expected time of delivery, return policies and warranties

Question 31

vendor managed inventory

Answer 31

buyers turn over ordering and inventory information directly with key suppliers

Question 32

performance review

Answer 32

the buyer assesses the performance of the supplier and decide to continue, modify or drop the arrangement

Question 33

E-procurement

Answer 33

purchasing through electronic connections between buyers and sellers

Question 34

reverse auctions

Answer 34

put their purchasing requests online and invite suppliers to bid for the business

Question 35

trading exchanges

Answer 35

companies work collectively to facilitate the trading process

Question 36

B-to-B digital and social media marketing

Answer 36

using digital and social media marketing approaches to engage business customers and manage customer relationships anywhere and anytime

Question 37

institutional market

Answer 37

schools, hospitals, nursing homes, prisons and other institutions that provide goods and services to people in their care

Question 38

government markets

Answer 38

governmental units - federal, state and local which purchase or rent goods and services for carrying out the main functions of government