Term
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Definition
| The marketing of goods and services to companies, governments, or not-for-profit organizations for use in the creation of goods and services that they can produce and market to others. |
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Term
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Definition
| Manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale. |
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Term
| North American Industry Classification System (NAICS) |
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Definition
| Provides common industry definitions for Canada, Mexico, and the United States, which makes it easier to measure economic activity in the three member countries of the North American Free Trade Agreement. |
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Term
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Definition
| The demand for industrial products and services is driven by, or derived from, demand for consumer products and services. |
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Term
| Organizational Buying Behavior |
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Definition
| The decision-making process that organizations use to establish the need for products and services and identify, evaluate, and choose among alternative brands and suppliers. |
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Term
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Definition
| The group of people in an organization who participate in the buying process and share common goals, risks, and knowledge important to purchase decisions. |
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Term
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Definition
| Three types of organizational buying situations: straight rebuy, new buy, and modified rebuy. |
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Term
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Definition
| The buyer reorders an existing product or service from the list of acceptable suppliers, probably without even checking with users or influencers from the engineering, production or quality control departments. Something that the company buys all the time and is cheap. Ex: Office Supplies and Maintenance services. |
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Term
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Definition
| In this buying situation the users, influencers, or deciders in the buying center want to change the product specifications, price, delivery schedule, size of the product, or supplier/vender. Although the item purchased largely the same as with the straight rebuy, the changes usually necessitate enlarging the buying center to include people outside the purchasing department. |
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Term
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Definition
| Here the organization is a first-time buyer of the product or service. This involves greater potential risks in the purchase, so the buying center is enlarged to include all those who have a stake in the new buy. Procter & Gamble's purchase of a multimillion-dollar fiber-optic network from Corning Inc. for its corporate offices in Cincinnati represented a new buy. |
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Term
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Definition
| Online trading communities that bring together buyers and supplier organizations to make possible the real-time exchange of information, money, products, and services. Also called B2B exchanges or e-hubs. |
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Term
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Definition
| In an e-marketplace, it is an online auction in which a seller puts an item up for sale and would-be buyers are invited to bid in competition with each other. |
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Term
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Definition
| In an e-marketplace, it is an online auction in which a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other. |
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Term
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Definition
| In some way reprocess a product or service they buy before selling it again to the next buyer. |
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Term
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Definition
| Wholesalers and retailers that buy physical products and resell them again without any reprocessing |
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Term
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Definition
| the federal, state, and local agencies that buy goods are services for the constituents they serve. |
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Term
| Organizational Buying Criteria |
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Definition
the objective attributes of the supplier's products and services and the capabilities of the supplier itself. The most commonly used criteria are,
(1.) Price,
(2.) Ability to meet the quality specifications required for the item, (3.) Ability to meet required delivery schedules,
(4.) Technical capability,
(5.) Warranties and claim policies in the event or poor performance,
(6.) past performance on previous contracts,
(7.) production facilities and capacity. |
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