Personal Selling- Final Exam Review- CH 14 – Retail, Business, Services, Non-Profit Selling

Flashcard maker : Lily Taylor
What is retailing? What are some examples?
Any individual or organization’s selling goods or services directly to final consumers for their personal, nonbusiness use.
What are some retail examples?
A retail sale may occur over the telephone, through the mail, on a street corner, on the Internet, in a private residence, or in a traditional retail store.
What is the difference between derived demand, inelastic demand and joint demand? Provide examples.
derived demand is demand linked to consumer demand for other products

ex. General Motors purchases tires for its cars. The number of tires it purchases is determined by the customer demand for new General Motors cars.

inelastic demand is demand that does not change in direct proportion to a change in price.

ex. The Chevrolet produced by General Motors has many parts. The cost of each part represents a fraction of the total cost. If there is an increase or decrease in the price of a single part, such as the interior cloth, the demand for the car is not significantly influenced. Even if the cost of the cloth doubled (assuming it did not represent a large proportion of production costs), and was passed along to the consumer, the car’s sales price would increase by a small amount, having little effect on consumer demand.

joint demand is demand that occurs when two or more products are used together to produce a single product.

General Motors manufactures automobiles and needs numerous component parts—tires, batteries, steel, glass, and so on. These products are demanded jointly.

What are the major types of business purchases?
Business purchases are usually one of three general types—new-task purchases, straight-rebuy purchases, or modified-rebuy purchases.

new-task purchases – a type of purchase made when a product is bought in conjunction with a job or task newly performed by the purchaser

straight-rebuy purchases – a routine purchase of products bought regularly

modified-rebuy purchases – a type of purchase made when regular purchasing patterns are slightly changed to suit customers’ present needs

Who are the people that may influence the purchase of a business product? Describe and provide an example for each.
People who may influence the purchase of a product include
Initiator. The person proposing to buy or replace the product

ex. For example, users of a company’s copy machine (initiators) may become dissatisfied with its quality of copies.

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