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Flashcards in Chapter 6 Deck (22):
1

Business and organizational consumers

Any buyers who buy for resale or to produce other goods and services

 

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Types of organizational customers:

Producers of goods and services

Intermediaries

Government units

Nonprofit organizations

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purchasing specifications

A written (or electronic) description of what the firm wants to buy

4

ISO 9000

A way for a supplier to document its quality procedures according to internationally recognized standards

5

Purchasing managers

Buying specialists for their employers

Usually specialize by product area and are real experts

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Multiple buying influence

Means that several people - perhaps even top management - play a part in making a purchase decision

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Possible buying influences

Users

Influencers

Buyers

Deciders

Gatekeepers

8

Buying center

All the people who participate in or influence a purchase

9

Vendor analysis

A formal rating of suppliers on all relevant areas of performance

Goal is to lower total costs associated with purchases

Tries to focus on economic factors

10

Requisition

A request to buy something

A person who needs to purchase something usually completed a requisition

11

New-task buying

Occurs when a customer organization has a new need and wants a great deal of information

Involves: setting product specifications, evaluating sources of supply, and establishing an order routine that can be followed in the future if results are satsifactory

Multiple buying influence is common

12

Straight rebuy

Routine repurchase that may have been made many times before

Dont bother looking for new information or new sources of supply

Take only a small part of an organized buyer's time

 

13

Modified rebuy

The in-between process where some review of the buying situation is done

14

Competitive bid

The terms of sale offered by the supplier in response to the purchase specifications posted by a buyer

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just-in-time delivery

Reliably getting products there just before the customer needs them

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negotiated contract buying

Agreeing to contracts that allow for changes in the purchase agreements

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outsource

Contract with an outside firm to produce goods or services rather than to produce them internally

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North American Industry Classification System (NAICS) codes

Groups of firms in similar lines of business

collects and publishes data 

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Open to buy

Buyers have budgeted funds that can be spent during the current period

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Resident buyers

Independent buying agents who work in central markets for severa retailer or wholesaler customers based in outlying areas of other countries

21

Foreign Corrupt Practices Act

Prohibits U.S. firms from paying bribes to foreign officials

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