Chapter 8 Business Markets and Buying Behavior 1 Reseller Markets Resellers o Intermediaries that buy finished goods and resell them for a profit Examples retailers wholesalers industrial 2 Government Markets distributors Federal state county or local governments that buy goods and services to support their internal operations and provide products to their constituencies Organizations with charitable educational community or 3 Institutional Markets other non business goals 4 Types of Business Purchases New Task Purchase solve a new problem Straight Rebuy Purchase o An item is purchased to be used to perform a new job or o A routine purchases of same products under approximately the same terms Modified Rebuy Purchase o A new task purchase that is changed on subsequent orders or when straight rebuy requirements are modified 5 Types of Demand for Business Products Derived Demand o Demand for business products that is the result of demand for consumer products o Demand that is not significantly altered by a price Inelastic Demand increase or decrease 6 Business Buying Decisions The Buying Center o The people within the organization who make business purchase decisions o Purchasing Agents 7 Reciprocity 8 Methods of Business Buying each other An arrangement in which two organizations agree to buy from Reciprocal agreements that threaten competition are illegal Description Standardized products Sampling Taking a sample of the product and test it Inspection Products have some unique characteristics
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