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38 Cards in this Set
- Front
- Back
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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 |
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B2B Characteristics |
Large purchases Multiple buyers / Professional buyers Fewer customers Geographic concentration Often international sources Competitive bids solicited Winner take all |
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Reasons for Buying |
Satisfy needs of others Satisfy business requirements Purchase for manufacturer or resale |
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ultimate user of the product |
consumer |
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businesses in B2B |
manufacturers wholesalers retailers governments non profits |
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requirements of B2B |
detailed specifications vendor evaluations financial terms delivery bias |
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short term B2B benefits |
cost |
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long term B2B benefits |
reliability dependability close working relationships |
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B2B Demand |
derived inelastic fluctuating joint |
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bought to sell to others (demand) |
derived demand |
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changes in price do not matter a lot (demand) |
inelastic demand |
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items not independent of one another (demand) |
joint |
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B2B customers |
producers resellers (retailers and wholesalers) governments not for profit (low budget) |
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single largest business organization in US |
Government |
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NAICS |
North American Industry Classification System |
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Buyclass Framework |
straight rebuy modified rebuy new task buying |
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Straight Rebuy |
little information required routine process little influence little time no review of supplies |
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Modified Rebuy |
moderate level of information required may seek some new input medium time some review of supplies |
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New Task Buying |
much information required actively seek information develop specifications time consuming much review of suppliers |
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buying center participants |
user initiator gatekeeper influencer decider buyer |
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e-commerce security issues |
hacking into systems computer visibility (competitors can see you) firewalls encryption authentication |
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product specifications |
formal/written requirements detailed compare alternatives |
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supplier evaluation |
quality of products financial status ability to deliver on time reliability dependability |
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supplier considerations |
single vs multiple sources reciprocity outsourcing reverse marketing |
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"you buy mine, I'll buy yours" |
reciprocity |
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producing products to the buyers specifications |
reverse marketing |
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single vs multiple sources |
companies usually buy from multiple sources more effort but less risky (than single source) |
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E-commerce |
extranets private exchange |
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external access to company information |
extranets |
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special access to internal information; used for supplier coordination |
private exchanges |
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B2B buying process |
problem recognition information search evaluation of alternatives product and supplier selection (long term) post purchase evaluation |
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B2B buying center characteristics |
multiple people involved multiple roles multiple responsibility professional activity formal/informal process |
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member of the buying center who actually needs the product |
user |
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member of the buying center who begins the buying process by first recognizing that the firm needs to make a purchase |
initiator |
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member of the buying center who controls the flow of information to other members |
gatekeeper |
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member of the buying center who effects the buying decision when he/she dispenses advice or shares expertise |
influencer |
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member of the buying center who makes the final decision; has the greatest power within the buying center |
decider |
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member of the buying center who has responsibility to execute the purchaser; primary function is to handle the details of the transaction |
buyer |
