Week 12b - Organizations

These flashcards cover key terms and concepts related to organizational buying behavior, ethics, consumer rights, and decision-making processes within a B2B context.

Organizational Buyers

Manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale.

Derived Demand

The demand for industrial products and services driven by the demand for consumer products and services.

B2B Buying Journey

The process organizations go through to identify, evaluate, and purchase products or services.

Straight Rebuy

A purchase that is minor and not complex, with decisions often made routinely by clerical personnel.

Modified Rebuy

A purchase where an organization changes specifications, prices, or suppliers, typically involving more evaluation than a straight rebuy.

New Task

tends to occur when the buying decision is very important and the choice is quite complex. Strategic issues will be of prime importance.

Reference Groups

Groups that influence organizational behavior and purchasing decisions.

Ethics of Exchange

includes caveat emptor, consumer rights

Caveat Emptor

A legal principle meaning 'let the buyer beware'; buyers have limited rights to recover from sellers if products are defective.

Consumer Bill of Rights

A set of rights that protects consumers including the rights to safety, choice, hearing, and informed decisions.

Moral Idealism

The belief that certain individual rights and duties are universal. (ex: consumer bill of rights) problems: two principals could come into conflict

Conflicting principles in Business

societal, stakeholder, and profit responsibility

Utilitarianism

An ethical theory that advocates for actions that provide the greatest good for the greatest number. problem:

Code of Ethics

A formal statement of rules of conduct and ethical principles for organizations.

Children’s Advertising Review Unit (CARU)

A unit that reviews advertising aimed at children to ensure comprehension of the selling intent.

Corrective Advertising

Advertising run by a firm to help consumers unlearn inaccurate information from previous ads.

Privacy Laws

Laws governing the privacy of individuals, including health and educational privacy.

Decision Making Unit (DMU)

The group of individuals involved in the purchasing decision-making process.

Stakeholder Responsibility

The obligation of a business to consider the interests of all stakeholders including customers, suppliers, and employees.

Profit Responsibility

The responsibility of a business to return profits to owners and shareholders.

Societal Responsibility

The obligation of businesses to act in the best interests of society at large.

Ethics

A system of moral principles that govern a person's or group's behavior.

Laws

Principles and regulations established in a community that are enforceable by authority.

Evaluative Criteria

The standards or measures used to assess the value or performance of a product or service.

Supplier Selection

The process of evaluating and choosing suppliers for organizational purchases.

Consumer Rights to Information

The necessity for states and businesses to provide sufficient information for informed consumer decisions.

Misalignment on Problem

A situation in which a group fails to agree on the nature or significance of a purchasing issue.

Problem Identification

The first step in the buying process, recognizing and defining the problem that needs to be solved.

Solution Exploration

The phase in the buying process where potential solutions to the problem are investigated.

RFP (Request for Proposal)

A document soliciting proposals from suppliers to provide a service or product.

Peer Discussions

Conversations among colleagues regarding purchasing decisions, which can influence outcomes.

Online Research

The act of gathering information over the internet to aid in decision making.

White Paper

An authoritative report that informs readers about a complex issue and presents the issuing body's philosophy.

Negotiation

The process of discussing terms and conditions to reach a mutual agreement.

Information Overload

A state in which a person or organization has too much information to process effectively.