Term
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Definition
| marketing of goods and services to companies, governments, or not-for-profit organizations for use in the creation of goods and services that they can produce and market to others. |
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Term
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Definition
| those manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale. |
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Term
| Organizational Buyers are divided by: |
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Definition
| industrial, reseller, and government |
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Term
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Definition
| reprocess a product or service they buy before selling it again to the next buyer |
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Term
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Definition
| wholesalers and retailers that buy physical products and resell them again without any reprocessing |
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Term
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Definition
| federal, state, and local agencies that buy goods and services for the constituents they serve |
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Term
| North American Industry Classification System(NAICS) |
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Definition
| provides common industry definitions for Canada, Mexico, and the United States, which makes it easier to measure economic activity |
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Term
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Definition
| the demand for industrial products and services is driven by, or derived from, demand for consumer product and services |
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Term
| Organizational Buying Criteria |
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Definition
| objective attributes of the suppliers products and services and the capabilities of the supplier itself. |
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Term
| Most common used criteria |
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Definition
| price, ability to meet the quality specifications required for the item, ability to meet required delivery schedules, technical capability, warranties and claim policies in the even of poor performance, past performance on previous contracts, production facilities and capacity |
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Term
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Definition
| an industrial buying practice in which two organizations agree to purchase each other's products and services |
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Term
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Definition
| when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the ultimate consumer. |
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Term
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Definition
| share common goals, risks, and knowledge important to a purchase decision. |
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Term
| Users(Roles in Buying Center) |
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Definition
| people in the organization who actually use the product or service, such as a secretary who will use a new word processor. |
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Term
| Influencers(Roles in the Buying Center) |
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Definition
| affects the buying decision, usually by helping define the specifications for what is bought. |
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Term
| Deciders(Roles in Buying Center) |
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Definition
| have the formal or informal power to select or approve the supplier that receives the contract. |
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Term
| Gatekeepers(Roles in Buying Center) |
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Definition
| controls the flow of information |
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Term
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Definition
| researchers who have studied three types of buying situations |
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Term
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Definition
| a first-time buyer of the product or service |
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Term
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Definition
| the buyer or purchasing manager reorders an existing product or service from the list of acceptable suppliers, probably without even checking with users or influencers from the engineering, production, or quality control departments |
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Term
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Definition
| the users, influencers, or deciders in the buying center want to change the product specifications, price, delivery schedule, or supplier |
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Term
| Organizational Buying Behavior |
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Definition
| decision-making process that organizations use to establish the need for products and services and identify, evaluate, and choose among alternative brands and suppliers |
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Term
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Definition
| an evaluation of whether components and assemblies will be purchased from outside suppliers or built by the company itself |
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Term
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Definition
| a systematic appraisal of the design, quality, and performance of a product to reduce purchasing costs |
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Term
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Definition
| a list of firms believed to be qualified to supply a given item |
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Term
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Definition
| a significant development in organizational buying has been the creation of online trading communities |
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Term
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Definition
| a seller puts an item up for sale and would-be buyers are invited to bid in competition with each other |
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Term
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Definition
| a buyer communicate a need for a product or service and would-be suppliers are invited to bid in competition with each other |
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