MT1 - Chapter 6 Vocab Flashcards
business buyer behavior
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
business buying process
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
B-to-B
business to business
main differences between business markets and consumer markets (3)
market structure and demand
nature of the buying unit
types of decisions and decision process involved
derived demand
business demand that ultimately comes 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/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 center
all the individuals and units that play a role in the purchase decision making process
users
members of the buying organization who will actually use the purchased product or service
influencers
people in an organization’s buying center who affect the buying decision; they often help define specifications and also provide information for evaluating alternatives
buyers
people in an organization’s buying center who make an actual purchase
deciders
people in an organization’s buying center who have formal or informal power to select or approve the final suppliers
gatekeepers
people in an organization’s buying center who control the flow of information to others
major influences on business buyers (4)
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)
8 steps of business buying process
problem recognition general need description product specification supplier search proposal solicitation supplier selection order routine specification performance review
problem recognition
stage of the business buying process where the company recognizes a problem or need that can be met by acquiring a good or service
general need description
stage of the business buying process where a buyer describes the general characteristics and quantity of a needed item
product specification
stage of the business buying process where the buying organization decides on and specifies the best technical product characteristics for a needed item
supplier search
stage of the business buying process where the buyer tries to find the best vendors
proposal solicitation
stage of the business buying process where the buyer invites qualified suppliers to submit proposals
supplier selection
stage of the business buying process where the buyer reviews proposals and selects a supplier or suppliers
order routine specification
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
performance review
stage in the business buying process where 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
types of e-procurement
reverse auctions
trading exchanges
company buying sites
extranet links
institutional market
schools, hospitals, nursing homes, prisons, and other institutions that provide goods and services to people in their care
government market
government units (federal state and local) that purchase or rent goods and services for carrying out the main functions of government
vendor managed inventory
large buyers turn over ordering and inventory responsibilities to their suppliers
