Chapter 7: Business Marketing

Question 1

Business-to-business (B2B) marketing

Answer 1

The process of matching capabilities between two non-consumer entities to create value for both organizations and the “customer’s customer”; also referred to as business marketing.

Question 2

Relationship commitment

Answer 2

A firm’s belief that an ongoing relationship with another firm is so important that the relationship warrants maximum efforts at maintaining it indefinitely.

Question 3

Trust

Answer 3

Confidence in an exchange partner’s reliability and integrity.

Question 4

Derived demand

Answer 4

Demand in the business market that comes from demand in the consumer market.

Question 5

Joint demand

Answer 5

The demand for two or more items used together in a final product.

Question 6

Multiplier effect (accelerator principle)

Answer 6

The phenomenon in which a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product.

Question 7

Reciprocity

Answer 7

A practice where business purchasers choose to buy from their own customers.

Question 8

Business services

Answer 8

Complementary and ancillary actions that companies undertake to meet business customers’ needs.

Question 9

Original equipment manufacturers (OEMs)

Answer 9

Individuals and organizations that buy business goods and incorporate them into the products that they produce for eventual sale to other producers or to consumers.

Question 10

North American Industry Classification System (NAICS)

Answer 10

An industry classification system developed by the United States, Canada, and Mexico to classify North American business establishments by their main production processes.

Question 11

Buying centre

Answer 11

All those people in an organization who become involved in the purchase decisions.

Question 12

New task buy

Answer 12

A situation requiring the purchase of a product for the first time.

Question 13

Modified rebuy

Answer 13

A situation where the purchaser wants some change in the original good or service.

Question 14

Straight rebuy

Answer 14

A situation in which the purchaser reorders the same goods or services without looking for new information or new suppliers.

Question 15

Buying centre’s six types of members:

Answer 15

Initiator, influencer, decider, purchaser, user, gatekeeper.

Question 16

Companies evaluation

Answer 16

Quality, service, price.