Management and Organizational Studies 2320A/B Chapter Notes - Chapter 7: Market Structure

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2320A/B
• Professor: Kevin Thompson

Document Summary

Business buying behaviour: refers to the buying behaviour of the organizations that buy goods and services for use in the production of other products and services that are sold, rented, and supplied to others. 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 chose among alternative suppliers and brands. Business to business (b2b) marketers must do their best to understand business markets and business buyer behaviour. Characteristics of business markets: market structure and demand. Business demand is derived demand: it ultimately derives from the demand for consumer goods. Inelastic demand demand not affected when price changes. Fluctuating demand more changes in demand: nature of buying a unit. Business purchase involves more decision participants and a more professional purchasing effort. B2b marketers now face a new breed of higher level better trained supply managers: types of decisions and the decision process.