Organisational Buying - Chapter 4

Question 1

decision- making process

Answer 1

stages that organisations and people pass through when purchasing a physical product or serivice

Question 2

decision-making unit

Answer 2

a group of people within an organisation who are involved in the buying decision(also known as the buying centre)

Question 3

e-commerce

Answer 3

involved all electronically mediated transactions between an organisation and any third party it deals with, including exchange of info

Question 4

e-procurement

Answer 4

digital systems that facilitate the management of the procurement process; often integrates with e-commerce systems

Question 5

just in time

Answer 5

aims to minimise stocks by organising a supply system that provides materials and components as they are required

Question 6

life cycle costs

Answer 6

all the components of costs associated with buying, owning and using a physical product or service

Question 7

modified rebuy

Answer 7

where a regular requirement for the type of product exists and the buying alternatives are known but sufficient changes (e.g. a delivery problem) has occurred to require some alteration to the normal supply procedure

Question 8

reverse marketing

Answer 8

process whereby the buyer attempts to persuade the supplier to provide exactly what the organisation wants

Question 9

straight rebuy

Answer 9

refers to a purchase by an organisation from a previously approved supplier or a previously purchased item

Question 10

total quality management

Answer 10

set of programmes designed to constantly imrpove the quality of physical products, services and processes

Question 11

value analysis

Answer 11

method of cost reduction in which components are examined to see if they can be made more cheaply