Exam 6: Business-To-Business Markets: How and Why Organizations Buy

As a result of ,the success of one company may depend on another company in a different industry.

means that it usually does not matter if the price of a business- to- business product goes up or down; the business customer will still buy the same quantity.

When a company allows certain suppliers,customers,and others outside the organization to access its intranet,the system is known as a(n).

Many businesses today are abandoning the traditional business attire and allowing their employees to come to work in business casual that typically does not include ties,cufflinks,or business suits.There has been a decrease in the sale of silk ties as a result of this cultural trend.A decrease in consumer demand for silk ties has led to a decrease in demand for silk because the demand for silk is .

Paperspace.com is a place where invited paper manufacturers and pulp mill operations around the world can trade with one another,and it is an example of a private exchange.

Suppliers,customers,and all employees have ready access to intranets.

What is the business- to- business e- commerce practice of private exchanges? Explain examples of two businesses that may utilize this private exchange.

During the stage of the business buying process,total spending for the product is considered.

In summer 2002,The Home Depot,a chain of building and garden supplies superstores,announced it would no longer do business with the federal government.A strong national feeling of patriotism resulted in the retailer receiving a great deal of negative newspaper coverage about the decision.Why do you think The Home Depot's management made such a decision about future dealings with the U.S.government?

What is the next step in the business buying decision process after writing the product specifications?

When a product has demand,an increase or decrease in the price of the product has little or no effect on the demand for the product.

The group of people in the organization who participate in the purchase decision- making process is referred to as the .

An Internet research firm projects that B2B sales transactions will take place through .

Pace Hardware uses Learningnow.com to improve sales force effectiveness and facilitate sharing of expertise.It allows Pace retailers to link with other Pace retailers to ask for managerial and marketing advice.It also allows Pace retailers to ask their suppliers about product usage,deliveries,and warranties,and it allows suppliers to send new- product information directly to Pace retailers.Pace Hardware uses a(n).

The buying center is the group of people in the organization who participate in the purchase decision- making process.

occurs when two or more goods are necessary to create a product.

A trucking company is considering purchasing new trucks that are powered by ethanol instead of diesel fuel.In terms of the buying center,the truck drivers who must make sure that the trucks' fuel tanks do not run out of fuel would be the .

A consumer products company contracts with several advertising agencies to promote its brands at home and around the globe.An opera buys costumes,sets,and programs.Mister's Diner buys a case of canned peas from JQ's Wholesale Club.The U.S.government places an order for 3,000 new computers.What does each of the transactions have in common? Explain.

GolfSeb.com,a popular site for golfing enthusiasts to trade tips and war stories about the best courses and the toughest holes,is an example of B2B e- commerce.

Suppliers are more likely to stay price competitive when the purchasing company uses single sourcing than when it uses multiple sourcing.