Term
| Business-to-business (B2B) e-commerce |
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Definition
| – commerce conducted using Internet-based exchanges. Businesses or organizations locate each other’s goods and services via e-commerce forums. |
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Term
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Definition
The marketing of goods and services to business customers that need them to enable the production of goods and services. A business my purchase goods and services that are:
1) part of the products/services they make and sale (i.e., BMW buying auto engines), or raw materials such as shoe leather
2) resold such as when Ford purchases Nissan cars and puts their namepleate on them. Value-added resellers take a product and modify it for a customer (ie., IT consultants buy software then modify it for resale, such as Protiviti buying SAP software and customizing it for resale
3) in support of their operations (ie., consumables such as copy paper and hand soap) |
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Term
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Definition
| The group of customers that include manufacturers, wholesalers, retailers, and other organizations. In comparison to B2C, are characterized as a relatively small # of players, yet a huge $$ amount. |
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Term
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Definition
| Business purchases are classified as being one of three types. The three classifications are based on the degree of time and effort required to make a decision. The three categories are straight rebuy, modified rebuy, new task buy). |
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Term
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Definition
| The group of people in an organization who participate in a purchase decision. Can include purchasers, legal, engineering, and other advisors. |
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Term
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Definition
| Demand for business or organizational products (tires) caused by demand for consumer goods of services (autos). |
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Term
| Inter-Organizational system |
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Definition
| A private, corporate computer network that links company departments, employees, and databases to suppliers, customers, and others outside the organization. An example is SAP’s Enterprise Resource Planning (ERP sytem). |
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Term
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Definition
| The federal, state, county, and local governments that buy goods and services to carry out public objectives and to support their operations. |
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Term
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Definition
| Demand in which changes in price have little or no effect on the amount demanded. A company hopes the demand for their product’s (tires) is relatively inelastic (demand is impervious -uneffected by price changes). |
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Term
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Definition
| One of the three buying situation classifications used buy business buyers. A previously made purchase that involves some change and that requires limited decision making to deal with the changes is called a modified rebuy. |
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Term
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Definition
| The business practice of buying a particular product from several different suppliers. Doing this can keep the price down as companies compete for your business. |
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Term
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Definition
| A new business-to-business purchase that is complex or risky and that requires extensive decision making. |
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Term
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Definition
| The business buying process of obtaining outside vendors to provide goods of services that otherwise might be supplied in-house. Examples are outsourcing tax accounting and preparation, or outsourcing legal representation. |
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Term
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Definition
| E-commerce systems that link an invited group of suppliers and partners over the web. These are industry groups organized around the production of, for example, meat, steel, ceramics, etc. |
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Term
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Definition
| A written description of the quality, size, weight, and so forth required of a product purchase. When creating an RFP, a business defines the specs they need the requested products/services to meet. The more detailed the specs, the higher the product/service quality will be. |
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Term
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Definition
| A trading partnership in which two firms agree to buy from one another. |
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Term
| Request for Proposal (RFP) |
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Definition
| a company asks suppliers to place bids (proposals) on a job (such as to build a building or provide component parts or services). |
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Term
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Definition
| a company asks suppliers to provide quotes (prices) for needed products |
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Term
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Definition
| The individuals or organizations that buy finished goods for the purpose of reselling, renting, or leasing to others to make a profit and to maintain their business operations. Could be a value-added reseller, where a company customizes or modifies a product for their customers. |
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Term
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Definition
| The business practices of buying a particular product from only one supplier. This is pretty risky. |
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Term
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Definition
| A buying situation in which business buyers make routine purchases that require minimal decision making. |
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