MGMA01H3 Chapter Notes - Chapter 7: E-Procurement, Market Structure
Document Summary
Business buyer behavior: buying behavior of the organizations that buy goods for use in the production of other good or to resell or to rent to others at a profit. Business buying process: decision process by which business buyers determine which products their organizations need to purchase, and find, evaluate and choose among alternatives. Differences between business markets and consumer markets / characteristics of business markets: market structure and demand. Business marketer normally deals with fewer but larger buyers. Business demand is derived demand ultimately derives from the demand for consumer goods. Inelastic demand total demand is not affected by price changes, especially in the short run. Fluctuating demand demand for goods changes more and more quickly: nature of the buying unit. Involves more decision participants and more professional purchasing effort. Business buying is done by trained purchasing agents: types of decision and decision process.
