end–of–chapter resources

Reviewing the Key Terms

business buyer behavior: The buying behavior of the organizations that buy goods and services for use in the production of other products and services or for the purpose of reselling or renting them to others at a profit.
business buying process: The decision process by which business buyers determine which products and services their organizations need to purchase, and then find, evaluate, and choose among alternative suppliers and brands.
buyers: The people who make an actual purchase.
buying center: All the individuals and units that participate in the business buying-decision process.
deciders: People in the organization's buying center who have formal or informal power to select or approve the final suppliers.
derived demand: Business demand that ultimately comes from (derives from) the demand for consumer goods.
gatekeepers: People in the organization's buying center who control the flow of information to others.
general need description: The stage in the business buying process in which the company describes the general characteristics and quantity of a needed item.
government market: Governmental units—federal, state, and local—that purchase or rent goods and services for carrying out the main functions of government.
influencers: People in an organization's buying center who affect the buying decision; they often help define specifications and also provide information for evaluating alternatives.
institutional market: Schools, hospitals, nursing homes, prisons, and other institutions that provide goods and services to people in their care.
modified rebuy: A business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers.
new task: A business buying situation in which the buyer purchases a product or service for the first time.
order-routine specification: The stage of the business buying process in which the buyer writes the final order with the chosen supplier(s), listing the technical specifications, quantity needed, expected time of delivery, return policies, and warranties
performance review: The stage of the business buying process in which the buyer rates its satisfaction with suppliers, deciding whether to continue, modify, or drop them.
problem recognition: The first stage of the business buying process, in which someone in the company recognizes a problem or need that can be met by acquiring a good or a service.
product specifications: The stage of the business buying process in which the buying organization decides on and specifies the best technical product characteristics for a needed item.
proposal solicitation: The stage of the business buying process in which the buyer invites qualified suppliers to submit proposals.
straight rebuy: A business buying situation in which the buyer routinely reorders something without any modifications.
supplier search: The stage of the business buying process in which the buyer tries to find the best vendors.
supplier selection: The stage of the business buying process in which the buyer reviews proposals and selects a supplier or suppliers.
systems selling: Buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation.
users: Members of the buying organization who will actually use the purchased product or service.
value analysis: An approach to cost reduction in which components are studied carefully to determine if they can be redesigned, standardized, or made by less costly methods of production.