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Questions and Answers
What characterizes the buyer in a business market compared to a consumer market?
What characterizes the buyer in a business market compared to a consumer market?
Which of the following statements about demand in business markets is true?
Which of the following statements about demand in business markets is true?
What distinguishes the nature of the buying unit in a business market?
What distinguishes the nature of the buying unit in a business market?
What implies a more complex purchasing process in business transactions?
What implies a more complex purchasing process in business transactions?
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Why is it difficult to apply relational marketing strategies with individual consumers?
Why is it difficult to apply relational marketing strategies with individual consumers?
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In business-to-business (B2B) relationships, the interaction between buyers and sellers is characterized by:
In business-to-business (B2B) relationships, the interaction between buyers and sellers is characterized by:
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Which type of demand is characterized by fluctuations in quantity based on changes in the final product's demand?
Which type of demand is characterized by fluctuations in quantity based on changes in the final product's demand?
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What role do technical experts play in business purchasing decisions?
What role do technical experts play in business purchasing decisions?
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What is the first step in the business buying process?
What is the first step in the business buying process?
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Which of the following internal stimuli could trigger the need for a new purchase in a business?
Which of the following internal stimuli could trigger the need for a new purchase in a business?
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During which stage of the business buying process do buyers prepare a document listing characteristics and quantity?
During which stage of the business buying process do buyers prepare a document listing characteristics and quantity?
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What influences the effort put into searching for suppliers in the business buying process?
What influences the effort put into searching for suppliers in the business buying process?
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Which criteria is NOT typically used in supplier selection?
Which criteria is NOT typically used in supplier selection?
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What does the final order (PO) preparation specify in the business buying process?
What does the final order (PO) preparation specify in the business buying process?
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What is a crucial aspect of relationship marketing in B2B environments?
What is a crucial aspect of relationship marketing in B2B environments?
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How do buyers typically assess suppliers after the initial search?
How do buyers typically assess suppliers after the initial search?
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What is a characteristic of a straight rebuy situation?
What is a characteristic of a straight rebuy situation?
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Which participant in the business buying process has the authority to negotiate terms of purchase?
Which participant in the business buying process has the authority to negotiate terms of purchase?
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In a new task buying situation, what typically occurs?
In a new task buying situation, what typically occurs?
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Who are considered gatekeepers in the business purchasing process?
Who are considered gatekeepers in the business purchasing process?
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What factor influences the necessity for greater effort in a new task buying situation?
What factor influences the necessity for greater effort in a new task buying situation?
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Study Notes
Consumer Behavior in Business Markets
- Business markets involve organizations purchasing goods and services for production, resale, or rental.
- These markets differ from consumer markets in several key aspects:
- Fewer, larger buyers: Fewer large buyers compared to many individual consumers.
- Relational marketing: Investment in relations with individual consumers is not cost-effective as relationships with individual customers yield very little profit.
- Derived demand: Demand for business products is derived from demand for consumer products. For example, demand for tires is derived from car production.
- Inelastic demand: A product price change does not significantly change demand for related business products.
- Fluctuating demand: Fluctuations in final demand have magnified effects on component demands in business markets. A 10% change in the final product demand can result in a 50% change in demand for related components.
- Buying units: More decision-makers and professional considerations are involved. This often means a buying committee with individuals from various departments working together on purchasing.
Business Buying Process
- Problem recognition: Internal or external factors identify a needed product or service.
- General need description: The characteristics and quantities of the needed item are documented.
- Product specifications: Detailed specifications for the product are developed.
- Supplier search: Potential suppliers are identified and evaluated.
- Proposal solicitation: Suppliers' written proposals are requested including costs. Buyers often receive several proposals.
- Supplier selection: The supplier that offers the best value is chosen.
- Order-routine specification: The final order is formalized including items, specifications, and quantities.
- Performance review: The buying department evaluates the supplier's performance
Types of Buying Situations
- Straight rebuy: Reordering without modification.
- Modified rebuy: Existing product is reordered but with some changes.
- New task: The purchase is completely new, and greater effort goes into researching and evaluating options.
Factors Influencing Business Buying
- Environmental: Economic, technological, political, and social factors.
- Organizational: Objectives, policies, procedures, structure, systems.
- Interpersonal: Authority, status, empathy, persuasive influence.
- Individual: Age, income, education, job position, personality, risk tolerance.
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Description
Explore the dynamics of consumer behavior in business markets through this quiz. Learn how organizational purchasing differs from individual consumer markets, focusing on aspects like relational marketing and derived demand. Test your understanding of these key concepts and their implications in the business world.
