Marketing 300 Chapter 6

Business buyer behavior
The buying behavior of the organizations that buy goods and services for use in the production of other products and services or for the purpose of reselling or renting them to others at a profit
Business buying process
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
Derived demand
Business demand that ultimately comes from (derives from) the demand for consumer goods.
Supplier development
Systematic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials that they will use in making their own products or resell to others
Straight rebuy
A business buying situation in which the buyer routinely reorders something without any modifications
Modified rebuy
A business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers
New task
A business buying situation in which the buyer purchases a product or service for the first time
Systems selling
Buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation
Buying center
All the individuals and units that participate in the business buying-decision process
Users
Members of the buying organization who will actually use the purchased product or service
Influencers
People in an organization’s buying center who affect the buying decision—they often help define specifications and also provide information for evaluating alternatives
Buyers
The people who make an actual purchase
Deciders
People in the organization’s buying center who have formal or informal power to select or approve the final suppliers
Gatekeepers
People in the organization’s buying center who control the flow of information to others
Problem recognition
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
General need description
The stage in the business buying process in which the company describes the general characteristics and quantity of a needed item
Product specification
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
Value analysis
An approach to cost reduction in which components are studied carefully to determine if they can be redesigned, standardized, or made by less costly methods of production
Supplier search
The stage of the business buying process in which the buyer tries to find the best vendors
Proposal solicitation
The stage of the business buying process in which the buyer invites qualified suppliers to submit proposals
Supplier selection
The stage of the business buying process in which the buyer reviews proposals and selects a supplier or suppliers
Order-routine specification
The stage of the business buying process in which the buyer writes the final order with the chosen supplier(s)
Performance review
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
Institutional market
Schools, hospitals, nursing homes, prisons, and other institutions that provide goods and services to people in their care
Government market
Governmental units—federal, state, and local—that purchase or rent goods and services for carrying out the main functions of government