Ch.6 Business and Organizational Customers and Their Buying Behavior

  1. Business and Organizational Customers
    • Any buyers who buy for resale or to produce other goods and services
    • Producers of good or services- including manufacturers, farmers, real estate developers, hotels, banks, doctors and lawyers
    • Intermediaries- wholesalers and retailers
    • Govt. units- federal agencies in the U.S. and other countries, state and local govts.
    • Nonprofit organizations-national organizations like the Red Cross and Girl Scouts, local organiztions like museums and churches
  2. Purchasing Specifications
    A written (or electronic) description of what the firm wants to buy
  3. ISO 9000
    A way for a supplier to document its quality procedures according to internationally recognized standards. Assures a customer taht the supplier has an effective quality checks in place, without the customer having to conduct its own costly and time consuming audit.
  4. Purchasing Managers
    buying specialists for their employers
  5. Multiple Buying Influences
    Several people play a part in making a purchase decision. Possiel buying influences: Users (workers/supervisors), Influencers (engeneering), Buyers (purchasing managers), Deciders (top management), Gatekeepers (receptionist/secretaries/research assistant)
  6. Buying Center
    All the people who participate in or influence a purchase. ex: buyers, users, gatekeepers, influences, deciders
  7. Vendor Analysis
    A formal rating of suppliers on all relevant areas of performance.
  8. Requisition
    A request to buy something
  9. New-Task Buying
    Occurs when a customer organizataion has a new need and wants a great deal of information
  10. Straight Rebuy
    A routine erpurchase that may have been made many times before
  11. Modified Rebuy
    The in-between process where some review of the buying situation is done
  12. Competitive Bid
    The terms of sale offered by the supplier in response to the purchase specifications posted by a buyer
  13. Just-In-Time Delivery
    Reliably getting products there just before the customer needs them
  14. Negotiated Contract Buying
    Agreeing to contracts that allow for changes in the purchase agreements
  15. Outsource
    Contract with an outside firm to produce goods or services rather than to produce them internally
  16. North American Industry Classification System (NAICS) Codes
    Detailed information of groups of firms in simliar lines of business
  17. Open to Buy
    The buyers are budgeted funds that can be spent during the current period
  18. Resident Buyers
    Independent buying agents who work in central markets (NYC, Paris, Rome, Hong Kong, Chicago, LA) are several retailer or wholesale customers based in outlying areas or other countries
  19. Foreign Corrupt Practices Act
    Passed by Congress in 1977, prohibits U.S. firms from paying bribes to foreign officials
Card Set
Ch.6 Business and Organizational Customers and Their Buying Behavior