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2204chapter 6 re - CHAPTER 6 REVIEW Marketing Concepts General characteristics of business-to-business markets Business and organizational

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CHAPTER 6 REVIEW Marketing Concepts: General characteristics of business-to-business markets Business and organizational customers: -Few in number -May be geographically concentrated -Often purchase higher-priced products in larger quantities. Businesses purchase: - equipment, - maintenance, - repair and operating products - Specialized services, and the materials and component parts needed to produce goods. Business demand is derived from: - Demand for another good or service - Generally not affected by price increases or decreases - Subject to great fluctuations - May be tied to the demand and availability of some other good. The primary difference between business customers and consumers a) Purchase decisions made by organizations frequently involve many people. b) Organizational and industrial products often are bought according to precise, technical specifications, requiring rational criteria and knowledge about the product category. c) The decision process for some business products is lengthy and may involve price negotiations and complex financial arrangements. d) Impulse buying is rare. Business buyers are usually professionals. e) Many products are purchased directly from the producer. f) Organizational purchase decisions are frequently characterized by high risk.
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B2B- business-to-business demand Derived demand Demand for business or organizational products derived from demand for consumer goods or services. Business demand is generally not affected by price increases or decreases (inelastic demand), is subject to great fluctuations, and may be tied to the demand and availability of some other good (joint demand). Factors that may cause demand to fluctuate is
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This note was uploaded on 07/16/2009 for the course BUSI 2204 taught by Professor X during the Winter '07 term at Carleton CA.

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2204chapter 6 re - CHAPTER 6 REVIEW Marketing Concepts General characteristics of business-to-business markets Business and organizational

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