Chapter 7: Business Buyers

Question 1

Business Marketing

Answer 1

the marketing of goods and services to individuals and organizations for purposes other than personal consumption

Question 2

Relationship Marketing

Answer 2

Retaining current customers a priority focus
Loyal customers are more profitable than price-sensitive customers with little brand loyalty
Long-term relationships build competitive advantage

Question 3

Strategic Alliances

Answer 3

Licensing or distribution agreements
Joint ventures
Research and development consortia
Partnerships

Question 4

4 things business products are used for?

Answer 4

Be used to manufacture other products
Become part of another product
Aid the normal operations of an organization
Be acquired for resale without change in form

Question 5

4 types of business buyers?

Answer 5

1) Producers
2) Resellers
3) Government
4) Institution

Question 6

NAICS

Answer 6

A detailed numbering system developed by the U.S., Canada, and Mexico to classify North American business establishments by their main production processes

Question 7

What is NAICS used for?

Answer 7

Valuable tool for marketers in analyzing, segmenting, and targeting markets

Question 8

Derived Demand

Answer 8

Demand for business products may result from demand for consumer products

Question 9

Inelastic Demand

Answer 9

A change in price may not significantly affect the demand for product.

Question 10

Joint Demand

Answer 10

Multiple items may be used together in final product, so demand for one item affects a

Question 11

Fluctuating Demand

Answer 11

Demand for business products is more volatile than for consumer products

Question 12

Business Buyers Behavior

Answer 12

Customer Service
Business Ethics
Buying Situations
Evaluative Criteria
Buying Center

Question 13

Reverse Marketing

Answer 13

means that companies pick and groom suppliers

Question 14

How does reverse marketing work?

Answer 14

Shape their product/technology development
Shape their investments
Develop exclusivity arrangements
Develop long term contracts and relationships Streamline joint processes

Question 15

Who is included in the buying decision?

Answer 15

People included in the buying decision often come from different functional groups and play different roles