Chapter Six Flashcards
Business buyer behaviour
The buying behaviour 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.
Business buying process
The decision process by which business buyers determine which products and services their organisations need to purchase and then find, evaluate and choose among alternative suppliers and brands.
Derived demand
Business demand that ultimately comes from (derives from) the demand for consumer goods.
Supplier development
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.
Straight rebuy
A business buying situation in which the buyer routinely reorders something without any modifications.
Modified rebuy
A business buying situation in which the buyer wants to modify product specifications, prices, terms or suppliers.
New task
A business buying situation in which the buyer purchases a product or service for the first time.
Systems selling (or solutions selling)
Buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation.
Buying centre
All the individuals and units that play a role in the purchase decision-making process.
Users
Members of the buying organisation who will actually use the purchased product or service.
Influencers
People in an organisation’s buying centre who affect the buying decision; they often help define specifications and also provide information for evaluating alternatives.
Buyers
People in an organisation’s buying centre who make an actual purchase.
Deciders
People in an organisation’s buying centre who have formal or informal power to select or approve the final suppliers.
Gatekeepers
People in an organisation’s buying centre who control the flow of information to others.
Problem recognition
The first stage of the business buying process in which someone in the company recognises a problem or need that can be met by acquiring a good or a service.
General need description
The stage in the business buying process in which a buyer describes the general characteristics and quantity of a needed item.
Product specification
The stage of the business buying process in which the buying organisation decides on and specifies the best technical product characteristics for a needed item.
Supplier search
The stage of the business buying process in which the buyer tries to find the best vendors.
Proposal solicitation
The stage of the business buying process in which the buyer invites qualified suppliers to submit proposals.
Supplier selection
The stage of the business buying process in which the buyer reviews proposals and selects a supplier or suppliers.
Order-routine specification
The stage of the business buying process 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.
Performance review
The stage of the business buying process in which the buyer assesses the performance of the supplier and decides to continue, modify or drop the arrangement.
E-procurement
Purchasing through electronic connections between buyers and sellers — usually online.
Institutional market
Schools, hospitals, nursing homes, prisons and other institutions that provide goods and services to people in their care.
Government market
Governmental units — federal, state and local — that purchase or rent goods and services for carrying out the main functions of government.
