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38 Cards in this Set

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Differences in B2B

Economics orientation


Less emotional decision


More formal/complication process


Consider total/long term costs


Large volumes


Dependable supply


Personal selling


System interfaces

B2B Characteristics

Large purchases


Multiple buyers / Professional buyers


Fewer customers


Geographic concentration


Often international sources


Competitive bids solicited


Winner take all

Reasons for Buying

Satisfy needs of others


Satisfy business requirements


Purchase for manufacturer or resale

ultimate user of the product

consumer

businesses in B2B

manufacturers


wholesalers


retailers


governments


non profits

requirements of B2B

detailed specifications


vendor evaluations


financial terms


delivery bias

short term B2B benefits

cost

long term B2B benefits

reliability


dependability


close working relationships

B2B Demand

derived


inelastic


fluctuating


joint

bought to sell to others (demand)

derived demand

changes in price do not matter a lot (demand)

inelastic demand

items not independent of one another (demand)

joint

B2B customers

producers


resellers (retailers and wholesalers)


governments


not for profit (low budget)

single largest business organization in US

Government

NAICS

North American Industry Classification System

Buyclass Framework

straight rebuy


modified rebuy


new task buying

Straight Rebuy

little information required


routine process


little influence


little time


no review of supplies

Modified Rebuy

moderate level of information required


may seek some new input


medium time


some review of supplies

New Task Buying

much information required


actively seek information


develop specifications


time consuming


much review of suppliers

buying center participants

user


initiator


gatekeeper


influencer


decider


buyer

e-commerce security issues

hacking into systems


computer visibility (competitors can see you)


firewalls


encryption


authentication

product specifications

formal/written requirements


detailed


compare alternatives

supplier evaluation

quality of products


financial status


ability to deliver on time


reliability


dependability

supplier considerations

single vs multiple sources


reciprocity


outsourcing


reverse marketing

"you buy mine, I'll buy yours"

reciprocity

producing products to the buyers specifications

reverse marketing

single vs multiple sources

companies usually buy from multiple sources


more effort but less risky (than single source)

E-commerce

extranets


private exchange

external access to company information

extranets

special access to internal information;


used for supplier coordination

private exchanges

B2B buying process

problem recognition


information search


evaluation of alternatives


product and supplier selection (long term)


post purchase evaluation

B2B buying center characteristics

multiple people involved


multiple roles


multiple responsibility


professional activity


formal/informal process

member of the buying center who actually needs the product

user

member of the buying center who begins the buying process by first recognizing that the firm needs to make a purchase

initiator

member of the buying center who controls the flow of information to other members

gatekeeper

member of the buying center who effects the buying decision when he/she dispenses advice or shares expertise

influencer

member of the buying center who makes the final decision;


has the greatest power within the buying center

decider

member of the buying center who has responsibility to execute the purchaser; primary function is to handle the details of the transaction

buyer