Chp 6 Business Markets and Busines Buyer Behavior – Flashcards
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Business buyer behavior
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The buying behavior of the organizations that buy goods and services for use in the production of other products and services or to resell or rent them to others at a profit.
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Business buying process
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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.
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Derived demands
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Business demands that ultimately comes from (derived from) the demand for consumer goods.
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Supplier development
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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.
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Straight rebuy
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A business buying situation in which the buyer routinely reorders something without any modifications.
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Modified rebuy
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A business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers.
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New task
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A business buying situation in which the buyer purchases a product or service for the first time.
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Systems selling (or solution selling)
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Buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation.
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Buying center
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All the individuals and units that play a role in the purchase decision-making process.
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Users
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Members of the buying organization who will actually use the purchased product or service.
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Influencers
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People in an organization's buying center who affect the buying decision; they often help define specifications and also provide information for evaluating alternatives.
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Deciders
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People in the organization's buying center who have formal or informal power to select or approve the final suppliers.
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Gatekeepers
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People in the organization's buying center who control the flow of information to others.
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Problem recognition
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The first stage of the business buying process in which someone in the company recognizes a problem or need that can be met by acquiring a good or a service.
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General need description
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The stage in the business buying process in which the company describes the general characteristics and quantity of a needed item.
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Product specification
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The stage of the business buying process in which the buying organization decides on and specifies the best technical product characteristics for a needed item.
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Supplier search
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The stage of the business buying process in which the buyer tries to find the best vendors.
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Proposal solicitation
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The stage of the business buying process in which the buyer invites qualified suppliers to submit proposals.
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Supplier selection
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The stage of the business buying process in which the buyer reviews proposals and selects a supplier or suppliers.
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Order-routine specification
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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.
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Performance review
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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.
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E-procurement
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Purchasing through electronic connections between buyers and sellers - usually online.
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Institutional market
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Schools, hospitals, nursing homes, prisons, and other institutions that provide goods and services to people in their care.
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Government market
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Governmental units—federal, state, and local—that purchase or rent goods and services for carrying out the main functions of government.
