Chapter 7 Textbook Summary.docx

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Department
Management and Organizational Studies
Course
Management and Organizational Studies 2320A/B
Professor
Kevin Thompson
Semester
Winter

Description
Chapter 7  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 o 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 o 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 o Types of Decisions and the Decision Process  More complex  Large sums of money  More formalized  Buyer and seller more dependent on each other  Supplier development: systematic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials for use in making products or reselling them to others  Major types of buying situations o Straight rebuy: buyer routinely reorders something without any modifications o Modified rebuy: buyer wants to modify product specifications, prices, terms, or supplies – suppliers may get nervous o New task: buyer purchases a product or service for the first time – marketers greatest opportunity and challenge o Systems selling (solutions selling): buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying decision  Participants in the business buying process o Buying center: all the individuals and units that play a role in the business purchase decision-making process  This group includes the actual users, those who make the buying decision, those who influence the buying decision, those w
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