marketplaces act as a neutral third party and provide an Internet technology trading platform and a centralized market that enable exchanges between buyers and sellers. In a traditional auction, products are sold to the buyer with the highest bid. In a reverse auction, the winner is the supplier with the lowest bid. Which of the following are reasons that a supplier might not like a reverse auction? It overemphasizes price as a buying criteria It threatens existing supply partnerships Which of the following are primary reasons for the popularity of online buying in all three kinds of organizational markets? Timely supplier information, reduced marketing costs
In a reverse auction, there are many suppliers involved and buyers benefit from the lower prices generated from this type of auction. Organizational buying behavior revolves around a decision-making process that has similarities to consumer buying behaviors. Derived demand means that the demand for industrial products and services is driven by demand for consumer products and services. The typical purchase involved in an organizational buying exchange is larger in size than that in consumer buying. Firms selling to organizational buyers have far fewer potential customers compared to firms selling to consumers. Main reason that business organizations buy products: to increase profitability
You've reached the end of your free preview.
Want to read all 3 pages?