| A | B |
|---|
| business buying process | a set of formal procedures when a business decides to purchase a product |
| new task purchase | a process when a business purchasing a product, inventory item, or supply for the first time |
| modified rebuy | a business purchases a new or modified product from established suppliers |
| straight rebuy | low risk purchase decisions that can be made without modifications |
| list price | the initial price that the seller posts on a product |
| net 30 (or 60) days | means the buyer must pay in full withing the amount of days specified from the date of the invoice |
| discounts | reductions from a product's list price designed to encourage customers to buy |
| trade discount | a price reduction that manufacturers give to their channel partners, such as wholesalers or retailers, in exchange for additional services |
| quantity discount | a price reduction offered to customers that buy in quantities larger than the specified minimum |
| seasonal discount | a price reduction offered for ordering or taking delivery of products in advance of the normal buying period |
| cash discount | a price reduction given for paying by a certain date |
| selling price | the actual price customers pay for the product |
| cost of goods sold | the cost to produce the product or buy it for resale |
| operating expenses | the costs of operating a business |
| margin or gross profit | the difference between the selling price and the cost of goods sold |
| net profit | the difference between the selling price and all costs and expenses of the business |
| markup | the amount added to the cost of goods sold to determine the selling price |
| markdown | any amount by which the original selling price is reduced before the item is sold |
| problem recognition | when a consumer identifies a need to satisfy or a problem to solve |
| information search | the consumer gathers information about alternative solutions for the need or problem |
| alternative evaluation | the consumer weighs the options to determine which will best satisfy the need or solve the problem |
| purchase | if the consumer identifies a suitable and affordable choice, he or she makes the purchase |
| post-purchase evaluation | the consumer uses the product or service and evaluates how well it met the need or solved the problem |
| advertising | any form of paid promotion that delivers a message to many people at the same time |
| advertising media | the methods of delivering the promotional message to the intended audience |
| publication advertising | newspapers, general and special interest magazines, business and professional journals and directories |
| mass media advertising | radio, network, and local television, cable television |
| outdoor advertising | billboards, signs, posters, vehicle signage, and electronic displays |
| direct advertising | sales letters, catalogs, brochures, inserts, telemarketing, fax messages, and computer databases |
| display advertising | window, counter, and aisle displays; special signage; self-service merchandising; trade show displays |
| internet advertising | static banner, interactive banner, buttons, sponsored site, cooperative site listings, e-mail list development |
| full disclosure | consumers are given all information necessary for consumers to make an informed decision |
| substantiation | consumers are able to question all claims companies make in advertising |
| personal selling | promotion through direct, personal contact with a customer |
| buying motives | the reasons people buy |
| objections | concerns or complaints expressed by the customer |
| sales promotion | any promotional activities other than advertising and personal selling intended to motivate customers to buy |
| self-service merchandising | customers select the products they want to purchase, take them to the checkout counter, and pay for them, without much help from salespeople |
