Term
- The approved supplier has not performed up to expectations
- New products have come into market triggering a reappraisal of the current purchase protocols
- The customers feels like it’s time for a change and wants to consider new suppliers |
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Definition
| 3 reasons for a modified rebuy |
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Term
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Definition
| A set of analyses and metrics grouped together to assess the cost of ownership |
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Term
- Financial criteria
- Value criteria
- Service criteria |
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Definition
| The three primary criteria used to evaluate the product choice |
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Term
| Changing vendors can disrupt processes and can raise costs in other areas |
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Definition
| What’s a reason why demand is inelastic in BSB markets? |
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Term
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Definition
| Demand within business markets affected by three critical dimensions: derived demand, fluctuating demand, and inelastic demand. |
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Term
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Definition
| Demand that originates from the demand for consumer products in business-to-business (B-to-B) marketing. |
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Term
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Definition
| When small changes in consumer demand lead to considerable shifts in business product demand. |
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Term
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Definition
| When changes in demand are not significantly affected by changes in price. |
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Term
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Definition
| Decisions made throughout the purchase decision process that vary widely and are based on factors such as nature of the purchase, number of people involved in the decision, understanding of the product being purchased, and time frame for the decision. |
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Term
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Definition
| A buying decision in which a customer is familiar with the product and supplier in a purchase decision, but is looking for additional information because of one or more of three circumstances: the supplier has performed poorly, new products have come into the market, or the customer believes it is time for a change. |
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Term
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Definition
| A company that is not on a firm’s list of approved suppliers. |
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Term
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Definition
| A number of individuals with a stake in a purchase decision who manage the purchase decision process and ultimately make the decision. |
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Term
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Definition
| Actual customers of a product or service who have a great deal of input at various stages of the buying decision process. but are typically not decision makers. |
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Term
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Definition
| The individual who starts the buying decision process. |
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Term
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Definition
| An individual, either inside or outside the organization, with relevant expertise in a particular area who provides information used by the buying center in making a final buying decision. |
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Term
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Definition
| An individual who controls access to information and relevant individuals in the buying center. |
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Term
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Definition
| An individual within the buying center who ultimately makes the purchase decision. |
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Term
| original equipment manufacturer (OEM) |
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Definition
| Manufacturing firms that sell products that are used as integral manufacturing components by their customer companies. |
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Term
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Definition
| A firm’s significant, Iongterm investments in critical equipment or technology necessary for its manufacturing and production activities. |
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Term
| materials, repairs, operational (MRO) |
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Definition
| Products used in everyday business operations that are not typically considered to be a significant expense for the firm. |
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Term
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Definition
| Companies that buy products and then resell them to other businesses or consumers for a profit. |
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Term
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Definition
| Nongovernmental organizations driven by the delivery of service to the target constituency, rather than by profits. |
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Term
| request for proposal (RFP) |
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Definition
| The document distributed to potential vendors that outlines an organization’s product or service needs. It serves as a starting point from which vendors put together their product solution. |
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Term
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Definition
| The end result of evaluating product alternatives in the purchase decision process. |
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Term
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Definition
| Selecting between multiple suppliers offering similar product configurations by examining their qualifications. |
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Term
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Definition
| A vendor’s ability to meet contractual obligations including delivery time and service schedules. |
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Term
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Definition
| The needs, desires, and objectives of those involved in a purchase decision. |
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Term
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Definition
| Organization-wide beliefs and attitudes that factor into a purchase decision. |
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Term
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Definition
| The process of online business purchasing. |
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Term
| electronic data interchange (EDI) |
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Definition
| Sophisticated ms that link a customer with its suppliers to manage inventories and automatically replenish supplies. |
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Term
Relationship with Customers
Number and Size of Customers
Geographic Concentration
Complexity of Buying Process
Complexity of the Supply Chain |
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Definition
| DIFFERENCES BETWEEN BUSINESS AND CONSUMER MARKETS (5) |
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Term
Nature of the purchase
Number of people involved in the decision
Understanding of the product being purchased
Time frame for the decision |
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Definition
| Business buying decisions vary widely based on the: |
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Term
Users
Initiatior
Influencer
Gatekeeper
Decider |
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Definition
| Buying Center Participants |
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Term
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Definition
| Buying center participant; Person(s) responsible for making final decision |
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Term
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Definition
| Buying center participant; Controls access to key participants in the process |
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Term
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Definition
| Buying center participant; Individuals in and out of company that affect decision |
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Term
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Definition
| Buying center participant; Could be user or executive who starts the process |
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Term
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Definition
| Buying center participant; Actual consumer of the product |
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Term
Who is part of the buying center?
Who are the most significant influencers?
What are the decision criteria for evaluating the various product options? |
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Definition
| Marketing Challenges in Buying Centers (the 3 Questions asked) |
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Term
Problem Recognition
Define the Need and Product Specifications
Search for Suppliers
Seek Sales Proposals - Response to RFP
Making the Purchase Decision
Post- Purchase Evaluate of Product and Vendor |
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Definition
| Model of Business Market Consumer Decision Process (6) |
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