Chapter 8 Flashcards
Business Market
Individuals, organizations, or groups that purchase a specific kind of product for resale, direct use in producing other products, or use in general daily operations.
Producer Markets
Individuals and business organizations that purchase products to make profits by using them to produce other products or using them in their operations.
Re-Seller Markets
Intermediaries that buy finished goods and resell them for a profit.
Government Markets
Federal, state, county, or local governments that buy goods and services to support their internal operations and provide products to their constituencies.
Institutional Markets
Organizations with charitable, educational, community, or other non-business goals.
Reciprocity
An arrangement unique to business marketing in which two organizations agree to buy from each other.
New-Task Purchase
An organization’s initial purchase of an item to be used to perform a new job or solve a new problem.
Straight Re-Buy Purchase
A routine purchase of the same products under approximately the same terms of sale by a business buyer.
Modified Re-Buy Purchase
A new-task purchase that is changed on subsequent orders or when the requirements of a straight re-buy purchase are modified.
Derived Demand
Demand for business products that stems from demand for customer products.
Inelastic Demand
Demand that is not significantly altered by a price increase or decrease.
Joint Demand
Demand involving the use of two or more items in combination to produce a product.
Business (Organizational) Buying Behavior
The purchase behavior of producers, government units, institutions, and re-sellers.
Buying Center
The people within an organization who make business purchase decisions.
Value Analysis
An evaluation of each component of a potential purchase.
