Week_5_Organization Buying Behavior & Marketing Research

Question 1

Four major Types of Customers

Answer 1

• Commercial
• Institutional
• Governmental
• International

Question 2

Main features of commercial customers

Answer 2

Manufacturers, construction companies, service firms, transport companies, some professional groups, and resellers.
Resellers includes wholesalers, industrial distributors, brokers/agents, and retailers who buy finished products to resell for a profit.
Concentration of customers - Far fewer but far larger
customers. Geographically
concentrated in California, New York, Ohio, Illinois, Michigan, Texas, Pennsylvania, New Jersey
Significant buying power. More than 50% of every dollar earned is spent on materials, supplies, and equipment to produce the product.
Purchasing function Usually administered by an individual. Relationships are developed between buyer and seller. The Internet is making purchasing more efficient and competitive

Question 3

Three Business Market Characteristics

Answer 3

Demand
Buyer-seller relationship
Supply chain

Question 4

Organizational Buying Process

Answer 4

Problem Recognition
General Description of Need
Detailed Description of Product Specs
Supplier Search
Acquisition and Analysis of Proposals
Supplier Selection
Selection of an Order Routine
Performance Review

Question 5

Buying Situation

Answer 5

Straight buy
Modified buy
New buy

Question 6

Straight buy

Answer 6

A combined effort between supplier and customer will produce better products and processes which will, in turn, improve manufacturing and marketing

Question 7

Modified buy

Answer 7

Situation in which purchasers require some additional information, however, a fairly routine process is followed

Question 8

New buy

Answer 8

First-time or unique purchase situation that requires considerable effort to collect extensive information about alternatives in the marketplace

Question 9

Influences on Organizational Buying Behavior

Answer 9

Economic influence
Technological influence
Strategic priorities
Strategic role purchasing
Organizational positioning of purchasing
Centralized vs individual user
Rational motives vs emotional motives
Differing evaluative criteria

Question 10

Buying Center Roles

Answer 10

Users
Influencers
Buyers
Deciders
Gatekeeper (secretary)

Question 11

How to find Segmenting Organizational Markets

Answer 11

By using customer type: Using North American Industry Classification System (NAICS)