TRUE

FALSE

situational analysis

business buying process

business diversification

business process automation

buying behavior of consumers who buy goods and services for personal consumption

buying behavior of the organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others

buying behavior of consumers who rely on small retailers for the regular supply of provisions

decision process by which business buyers determine which products and services their organizations need to purchase

Kruger Group sells interior security systems to resorts.

A country club buys safety equipment for its swimming pool.

Maria Theresa shops for her family's groceries at the local Whole Foods store.

A firm buys laptops from Dell for company salespeople to use when traveling.

the nature of the buying unit is the same for both

the decision processes involved in both the markets are same

both involve people who assume buying roles and make purchase decisions to satisfy needs

both share the same market structure

nature of the buying unit

market structure and demand

number of buyers

people who make purchase decisions to satisfy needs

far fewer but far larger buyers

far more but far smaller buyers

negligible customer complaints

far less fluctuations in demands

the total demand for products is not much affected by short-term price changes

buyers are highly sensitive to price changes

derived demand is absent

a business purchase usually involves fewer decision participants

Business purchases involve more professional purchasing effort than consumer purchases.

Business purchases involve fewer participants in decision making compared to consumer purchases.

Purchasing agents are absent in business purchases.

Business purchases involve less technical and economic considerations compared to consumer purchases.

less complex buying decisions

shorter buying processes

informal buying processes

more complex buying decisions