Term
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Definition
| When producers buy goods and services to support their own production and operations |
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Term
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Definition
Items that are major purchases such as mainframe computers and machine tools that the producer uses for a number of years.
End users. |
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Term
| Maintenance, Repair, and Operating Supplies (MROS) |
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Definition
Paper towels and replacement parts for machinery.
End users |
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Term
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Definition
| Original equimpment manufacturers - they purchase goods (ie raw and processed materials) to use in making their own products. |
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Term
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Definition
| Buy products and services to manufacture and sell their products and services to cusotmers. Products are included in manufacturing. |
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Term
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Definition
Means that purchases made by these customers depend on the demand for their products.
Sales to resellers and OEMs |
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Term
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Definition
| Buy finished products or services with the intention to resell |
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Term
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Definition
| How much a reseller makes on each sale |
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Term
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Definition
| How quickly an item sells and how much effort it takes to sell |
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Term
| 8 Steps in the Buying Process |
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Definition
- Recognition of need
- Definition of the product type needed
- Development of detailed specifications
- Search for qualified suppliers
- Acquisition and analysis of proposals
- Evaluation of proposals and selection of a supplier
- Placing and receiving the order
- Evaluation of product performance
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Term
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Definition
A customer becomes increasingly committed to a particular course of action while going through the steps in the buying process
As decisions are made at each step, the range of alternatives narrows; the customer becomes more and more committed to a specific course of action and even to a specific vendor
critical that salespeople be involved in initial steps |
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Term
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Definition
| a customer purchases a product or service for the first time |
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Term
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Definition
| A customer buys the same product from the original source |
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Term
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Definition
| The customer has purchased the product in the past but is looking for new information |
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Term
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Definition
| informal, cross-department group of people involved in new task and modified rebuy decisions |
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Term
| Role of users in the buying process |
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Definition
| Manufacturing personnel for OEM products and capital equipment. Typicalluy do not make the ultimate purchase decision, however they have influence in the early and late stages of the buying process |
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Term
| Role of initiators in the buying process |
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Definition
The person who starts the buying process - usually because of a user's dissatisfaction with a product currently used.
Can often be a user. |
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Term
| Role of influencers in the buying process |
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Definition
| People inside or outside the organization who directly or indirectly provide information during the buying process. (ie economic or technical influencer) |
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Term
| Role of gatekeepers in the buying process |
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Definition
Control the flow of information and may limit the alternatives considered. This can be quality control or service departments who determine qualified suppliers.
Purchasing agents often play this role. |
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Term
| Role of deciders in the buying process |
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Definition
Make the final choice.
Can be a purchasing agent in the case of straight rebuys. In new task purchases, several people usually make the decision. |
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Term
| What are the organizational factors influencing the buying decision? |
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Definition
- Economic criteria
- Quality criteria
- Service criteria
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Term
| What are the individual factors influencing organizational buying decisions? |
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Definition
- Needs of buying center members
- Financial security, self-esteem, recognition
- Risk reduction
- Personal risks
- Personal needs
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Term
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Definition
| total cost of ownership, method for determining the cost of equipment or supplies over their useful lives. |
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Term
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Definition
- Logistics
- Managing inventory while controlling costs
- Just in time inventory control system
- Automatic replenishment
- Electronic data interchange
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Term
| Electronic Data Interchange |
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Definition
| computer systems that share data across companies. |
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