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27 Cards in this Set
- Front
- Back
Buy Classes
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Three types of buying situations: new buy, modified rebuy, and straight rebuy.
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Buyers (Purchasing Agents, Purchasing Managers)
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The person who handles the paperwork of the actual purchase.
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Buying Center
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The people in a large organization who are responsible for buying decisions, ranging from purchasing department employees to members of the design team, who share common goals, risks, and knowledge important to a purchase decision.
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Decider
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The person who ultimately determines any part of or the entire buying decision -- whether, what, how, or where to buy.
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Derived Demand
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The link between consumers' demand for a company's output and the company's purchase of necessary inputs to manufacture or assemble that particular output.
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Gatekeeper
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The person who controls information or access to decision makers and influencers.
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Governmental Units
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Federal, state, and local agencies that buy goods and services for the constituents they serve.
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Inelastic Demand
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Demand that is not significantly altered by a price increase or decrease.
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Influencer
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The person whose views influence other members of the buying center in making the final decision.
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Institutional Markets
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Organizations with charitable, educational, community, or other non-business goals.
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Joint Demand
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Demand involving the use of two or more items in combination to produce a product.
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Make-Buy Decision
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Evaluation of whether components and assemblies will be purchased from outside suppliers or built by the company itself.
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Modified Rebuy
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The buyer has purchased a similar product in the past but has decided to change some specifications, such as the desired price, quality level, options, etc.
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New Buy
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A customer purchases a good or service for the first time. The buying decision is more involved because the buyer does not have any experience with the item.
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New-Task Purchase
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An organization's initial purchase of an item to be used to perform a new job or solve a new problem.
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Organizational Buyers
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Manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale.
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Product Specifications
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A list of requirements given to potential vendors for use in developing their proposal.
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Reciprocity
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Industrial buying practice in which two organizations agree to purchase each other's products and services.
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Resellers
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Marketing intermediaries that resell manufactured products without significantly altering their form.
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Reverse Auction
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A buyer communicates the need for a product or service and would-be suppliers bid in competition with each other. The price goes down as the number of suppliers increases.
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Straight Rebuy
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The buyer simply buys additional units of products that had previously been purchased.
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Traditional Auction
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A seller puts an item up for sale and would-be buyers bid in competition with each other. The price increases as the number of buyers increases.
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User
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The person who consumes or uses the product or service.
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B2B Buying Process
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1. Need Recognition
2. Product Specification 3. RFP Process 4. Proposal Analysis and Supplier Selection 5. Order Specification 6. Vendor Performance Assessment Using Metrics |
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Initiator
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The person who first suggests buying the particular product or service.
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Organizational Culture
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Autocratic
Democratic Consultative Consensus |
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Sustainable Procurement
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Aims to integrate environmental considerations into all stages of an organization's buying process with the goal of reducing the negative impact on human health and the physical environment.
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