Chapter 6

What is business buyer behavior?

Business buyer behavior refers to the buying behavior of organizations that purchase goods and services for use in the production of other products and services.

What are the key types of items included in business purchases?

Goods that are sold, rented, or supplied to others.

What is the business buying process?

The decision process by which business buyers determine which products and services are needed and subsequently find, evaluate, and choose among alternative brands.

What must Business-to-Business (B-to-B) marketers understand?

They must understand business markets and business buyer behavior.

What encompasses business markets?

Markets that buy goods and services for further processing or use in their production processes.

What is the difference between business markets and consumer markets?

Business markets involve fewer but larger buyers, inelastic demand, and derived demand from consumer goods.

How does demand in business markets differ from consumer markets?

Business demand is derived from consumer demand and tends to change more quickly in response to variations in consumer demand.

What are the three major types of buying situations?

Straight rebuy, modified rebuy, and new task.

What is a straight rebuy?

The buyer routinely reorders something without modifications.

What is a modified rebuy?

The buyer wants to modify product specifications, prices, terms, or suppliers.

What defines a new task buying situation?

The buyer purchases a product or service for the first time.

What is a buying center?

All the individuals and units that play a role in the purchase decision-making process.

Name the five roles in a buying center.

Users, Influencers, Buyers, Deciders, Gatekeepers.

How does interpersonal influence affect business buying?

Participants may influence each other and ultimately the business buying process through relationships, expertise, and control over rewards.

What are the major factors that influence business buyers?

Environmental, organizational, interpersonal, and individual factors.

What triggers problem recognition in the business buying process?

Someone in the company recognizes a problem or need that can be met by acquiring a good or service.

What stage comes after problem recognition in the business buying process?

General need description.

What is general need description?

The stage in which a buyer describes the general characteristics and quantities of a needed item.

What is product specification?

The stage where the buying organization specifies the best technical product characteristics for a needed item.

What occurs in the supplier search stage?

The buyer tries to find the best vendors.

What is proposal solicitation?

The stage in which the buyer invites qualified suppliers to submit proposals.

How is the supplier selection stage characterized?

The buyer reviews proposals and selects a supplier or suppliers based on desired attributes.

What is included in order-routine specification?

The final order with adjustments on technical specifications, quantities, and expected delivery times.

What happens during the performance review stage?

The buyer assesses the performance of the supplier and decides to continue, modify, or drop the arrangement.

What is e-procurement?

Purchasing through electronic connections between buyers and sellers, usually online.

What advantages do e-procurement provide for buyers?

Access to new suppliers, lower costs, reduced order-to-delivery time, and efficiency.

How do B2B marketers benefit from digital and social media?

They connect with customers, share marketing information, and maintain ongoing relationships.

What are institutional markets?

Markets consisting of entities like schools and hospitals that provide goods and services to people in their care.

What defines government markets?

Governmental units at federal, state, and local levels that purchase goods and services for government functions.

What are the characteristics of government buying?

It emphasizes price, often uses open-bid processes, and involves public review.

What influences government purchasing behavior?

Environmental, organizational, interpersonal, and individual factors, along with social and economic pressures.