1. CHAPTER 6 DISCUSSION QUESTIONS
1) Any buyers who buy for resale or to produce other goods & services are known
as what?
2) Fill in the blank. Like final consumers, organizations make purchases to satisfy
________________.
3) What is a written (or electronic) description of what the firm wants to buy?
4) What is a way for a supplier to document its quality procedures according to
internationally recognized standards?
5) All the people who participate in or influence a purchase are known as what?
6) A formal rating of suppliers on all relevant areas of performance is known as
what?
7) A request to buy something is known as what?
2. ANY BUYERS WHO BUY FOR RESALE OR TO PRODUCE OTHER GOODS & SERVICES ARE KNOWN AS
WHAT?
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BUSINESS & ORGANIZATIONAL CUSTOMERS
TYPES OF BUSINESS & ORGANIZATIONAL CUSTOMERS:
-PRODUCERS OF GOODS & SERVICES
-MANUFACTURERS, FARMERS, BANKS, DOCTORS, LAWYERS, ETC.
-INTERMEDIARIES
-WHOLESALERS & RETAILERS
-GOVERNMENT UNITS
-FEDERAL, STATE, & LOCAL GOVERNMENTS
-NONPROFIT ORGANIZATIONS
-AMERICAN RED CROSS, BOY/GIRL SCOUTS OF AMERICA, CHURCHES, ETC.
3. LIKE FINAL CONSUMERS, ORGANIZATIONS MAKE PURCHASES TO SATISFY
NEEDS
-THEY BUY GOODS & SERVICES THAT WILL HELP THEM MEET THE DEMAND
FOR THE GOODS & SERVICES THAT THEY IN TURN SUPPLY TO THEIR
MARKETS.
-THEIR BASIC NEED IS TO SATISFY THEIR OWN CUSTOMERS & CLIENTS.
-MARKETING MANAGERS REFER TO ORGANIZATIONAL CUSTOMERS AS THE
BUSINESS-TO-BUSINESS (B2B) MARKET.
4. A PRODUCER BUYS BECAUSE IT WANTS TO EARN A PROFIT BY
MAKING & SELLING GOODS OR SERVICES.
5. A WHOLESALER OR RETAILER BUYS PRODUCTS IT CAN PROFITABLY
RESELL TO ITS CUSTOMERS.
6. A TOWN GOVERNMENT WANTS TO MEET ITS LEGAL & SOCIAL
OBLIGATIONS TO CITIZENS.
7. WHAT IS A WRITTEN (OR ELECTRONIC) DESCRIPTION OF WHAT THE FIRM WANTS TO BUY?
PURCHASING SPECIFICATIONS
-WHEN QUALITY IS HIGHLY STANDARDIZED THE SPECIFICATION MAY SIMPLY CONSIST OF A BRAND
NAME OR PART NUMBER.
-WHEN THE PURCHASE REQUIREMENTS ARE MORE COMPLICATED THE SPECIFICATION MAY SET OUT
DETAILED INFORMATION ABOUT THE PERFORMANCE STANDARDS THE PRODUCT MUST MEET.
8. WHAT IS A WAY FOR A SUPPLIER TO DOCUMENT ITS QUALITY PROCEDURES
ACCORDING TO INTERNATIONALLY RECOGNIZED STANDARDS?
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ISO 9000
-ASSURES A CUSTOMER THAT THE SUPPLIER HAS EFFECTIVE QUALITY
CHECKS IN PLACE WITHOUT THE CUSTOMER HAVING TO CONDUCT ITS OWN
COSTLY & TIME CONSUMING AUDIT.
-TO GET ISO 9000 CERTIFIED A COMPANY MUST PROVE TO OUTSIDE AUDITORS
THAT IT DOCUMENTS HOW THE COMPANY OPERATES & WHO IS RESPONSIBLE
FOR QUALITY EVERY STEP OF THE WAY.
9. MULTIPLE BUYING INFLUENCE
SEVERAL PEOPLE WITHIN THE ORGANIZATION PLAY A PART IN MAKING A PURCHASE DECISION
1) USERS
-PRODUCTION LINE WORKERS
2) INFLUENCERS
-ENGINEERING OR R&D PEOPLE
3) BUYERS
-PURCHASING MANAGERS
4) DECIDERS
-TOP MANAGEMENT
5) GATEKEEPERS
-ADMINISTRATIVE ASSISTANTS