MT1 - Chapter 6 Vocab

Question 1

business buyer behavior

Answer 1

the buying behavior of organizations 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

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

Question 3

B-to-B

Answer 3

business to business

Question 4

main differences between business markets and consumer markets (3)

Answer 4

market structure and demand
nature of the buying unit
types of decisions and decision process involved

Question 5

derived demand

Answer 5

business demand that ultimately comes from the demand for consumer goods

Question 6

supplier development

Answer 6

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 7

straight rebuy

Answer 7

a business buying situation in which the buyer routinely reorders something without any modifications

Question 8

modified rebuy

Answer 8

a business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers

Question 9

new task

Answer 9

a business buying situation in which the buyer purchases a product or service for the first time

Question 10

systems/solutions selling

Answer 10

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

Question 11

buying center

Answer 11

all the individuals and units that play a role in the purchase decision making process

Question 12

users

Answer 12

members of the buying organization who will actually use the purchased product or service

Question 13

influencers

Answer 13

people in an organization’s buying center who affect the buying decision; they often help define specifications and also provide information for evaluating alternatives

Question 14

buyers

Answer 14

people in an organization’s buying center who make an actual purchase

Question 15

deciders

Answer 15

people in an organization’s buying center who have formal or informal power to select or approve the final suppliers

Question 16

gatekeepers

Answer 16

people in an organization’s buying center who control the flow of information to others

Question 17

major influences on business buyers (4)

Answer 17

environmental (economy, supply conditions, tech, politics/regulation, competition, culture & customs)
organizational (obj, strategies, structure, systems, procedures)
interpersonal (influence, expertise, authority, dynamics)
individual (age/edu, job position, motives, personality, preferences, buying style)

Question 18

8 steps of business buying process

Answer 18

problem recognition
general need description
product specification
supplier search
proposal solicitation
supplier selection
order routine specification
performance review

Question 19

problem recognition

Answer 19

stage of the business buying process where the company recognizes a problem or need that can be met by acquiring a good or service

Question 20

general need description

Answer 20

stage of the business buying process where a buyer describes the general characteristics and quantity of a needed item

Question 21

product specification

Answer 21

stage of the business buying process where the buying organization decides on and specifies the best technical product characteristics for a needed item

Question 22

supplier search

Answer 22

stage of the business buying process where the buyer tries to find the best vendors

Question 23

proposal solicitation

Answer 23

stage of the business buying process where the buyer invites qualified suppliers to submit proposals

Question 24

supplier selection

Answer 24

stage of the business buying process where the buyer reviews proposals and selects a supplier or suppliers

Question 25

order routine specification

Answer 25

stage of the business buying process where the buyer writes the final order with the chosen supplier(s), listing the tech specifications, quantity needed, expected time of delivery, return policies, and warranties

Question 26

performance review

Answer 26

stage in the business buying process where the buyer assesses the performance of the supplier and decides to continue, modify, or drop the arrangement

Question 27

e-procurement

Answer 27

purchasing through electronic connections between buyers and sellers, usually online

Question 28

types of e-procurement

Answer 28

reverse auctions
trading exchanges
company buying sites
extranet links

Question 29

institutional market

Answer 29

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

Question 30

government market

Answer 30

government units (federal state and local) that purchase or rent goods and services for carrying out the main functions of government

Question 31

vendor managed inventory

Answer 31

large buyers turn over ordering and inventory responsibilities to their suppliers