Chapter 6 Flashcards
(11 cards)
Define organizational buying
the decision-making process of formal organizations that are planning to purchase products and services
Define business market
Consists of all organizations that acquire goods and services used in the production of other goods and services
What are 5 unique characteristics of the business market
- fewer, larger buyers
- close supplier-customer relationship
- professional purchasing
- Multiple buying influences
- Multiple sales calls
Define the institutional market
Market consists of schools, hospitals, nursing homes and other institutions (low budgets and captive clienteles)
There are three types of business buying:
- Straight rebuy (reorder on routine basis)
- Modified rebuy (reorder with modifications)
- New task (first time)
Define turnkey solutions
Total solution delivered and installed by one supplier
Define buyer center
All the individuals participating in the purchasing decision-making process of businesses
What are the 7 roles within the buying center
- Initiators (request of purchase)
- Users
- Influencers
- Deciders
- Approvers
- Buyers
- Gatekeepers
What are the 8 buyphases in the business buying-decision process?
- Problem recognition
- General need description and product specification
- Supplier search
- Proposal solicitation
- Supplier selection
- Order-routine specification
- Performance review
What are 4 factors that can influence the development of a relationship between business partners?
- Availability of alternatives
- Importance of supply
- Complexity of supply
- Supply market dynamism
What are 8 buyer-supplier relationships?
- Basic buying and selling
- Bare bones (more adaption by seller)
- Contractual transaction (low level of trust & cooperation)
- Customer supply (competition > cooperation)
- Cooperative systems (united but no commitment)
- Collaborative (true partnership with trust)
- Mutually adaptive (make much adaptations)
- Customer is king (seller adapts to buyers needs)
