Business Service – the intangible product 9service), such as banking and maintenance, that is purchased by organizations that produce other products. It is a type of industrial product.
Business-to-Business Advertising – An area of advertising for products, services, resources, materials and supplies purchased and used by business. This area includes: 1. industrial advertising which involves goods, services, resources, and supplies used in the production of other goods and services; 2. trade advertising, which is directed to the wholesalers and retailers who buy the advertised product for resale to consumers; 3. professional advertising, which is directed to members of various professions who might use or recommend the advertised product; and 4. agricultural advertising, which is directed to farmers as business customers of various products and services.
Business Statistics – Published biennially by the Department of Commerce, it provides a historical record of the data series that appear monthly in the Survey of Current Business.
Busorama – Transit Advertising illuminated panels carried on top of buses and back-lighted with fluorescent tubes. They run the length way of the bus.
Bus Package Express – a formalized service for sending small packages via scheduled buses. Many buses have a considerable amount of unused baggage space which can be devoted to this. Delivery is quick over the medium distance.
Buy-and-Sell Transport – An activity in which a firm operating trucks as furtherance of its business, uses those trucks to transport goods to others as a way of filling the truck and obtaining revenue for the return trip, or operating a system whereby the truckload is bought and resold to others. This activity is not permitted under present law. The ICC has recently confirmed this interpretation in a case where three paving firms were transporting asphalt from major oil companies to users. It was held that they were engaging in for-hire transport in interstate commerce without appropriate ICC authority. See: Primary Business Test
Buy-Back Allowance – A form of trade sales promotion in which channel members are offered an incentive to restock their store or warehouse with the product to the level in place prior to acount and recount promotion offer.
Buy-Back – In international trade, an agreement by which the seller of goods agrees to accept as partial or full payment items made by or from the goods originally sold. See: Compensation Deal, Counter Purchase
Buy-one-get One Free – A sales promotion offer made for either the retailer or the consumer in which purchase of one unit of the product is encouraged or rewarded by providing a second unit of the same product free of charge.
Buyclasses – Buying situation that are distinguished on four characteristics; newness to decision makers, number of alternatives to be considered, uncertainty inherent in the buying situation, and the amount of information needed for making a buying decision. There are three buyclasses: new task purchase, modified rebuy, and straight rebuy. A new task purchase is a problem or requirement that has not arisen before such that the buying center does not have relevant experience with the product or service. A modified rebuy is a situation such that the buying center has some relevant experience to draw upon. The alternatives considered, however, is different, or changed from the ones considered the last time a similar problem arose. A straight rebuy is the purchase of standard parts; maintenance, repair, and operating items and supplies; or any recurring need that is handled on a routine basis.
Buyer – (1) In a Department Store, the key person who is really a department head responsible in his department for buying, selling, pricing, and controlling his lines of goods, as well as managing his area and his personnel. (2) In an individual firm, usually equivalent to purchasing agent, although an assistant may be so designated for a specific material or class of materials. (3) In a multi-unit retailing business, a person responsible for buying certain goods for resale. Separated from the selling Function.
Buyer Behavior – This term is often used as an alternative to consumer behavior, but also is used when the purchaser is not ultimate consumer but rather an industrial buyer, a buying center, or other middleman between the seller and the ultimate user. It is defined by some as the more general term, with consumer behavior and organizational buyer behavior as subsets.
Buyer Intention – A measure of a buyer’s intention to buy a product or service. It can be measured as the subjective probability that a buyer’s beliefs and attitudes will be acted upon in a purchasing framework.
Buyer Readiness Stage – The buyer’s stage regarding readiness to buy a certain product or service. At any time, people are in different stages; unaware, aware, informed, interested, predisposed to buying, and intending to buy.
Buyers’ Costs – The costs that buyers incur when acquiring and using products and services. Such costs include the price of the item being acquired, cost of the information search, shipping costs, transportation costs, installation costs, and post purchase costs that may affect buyers’ perceptions of value of the item being acquired.
Buyer’s Remorse – The insecurity that a buyer feels about the appropriateness of the purchase decision after the decision has been made. It also is called post purchase dissonance.
Buyer’s Market – a condition of the market in which buyers are able to bargain and to be selective because there is an over-abundance of goods available in relation to Demand. See: Seller’s Market
Buyer’s Surplus – The difference between what a buyer pays for an item and the amount more he would be willing to pay for it. A broader term than consumer’s surplus because it includes industrial users.
Buyer’s Wheel – A circular device usually made of cardboard, designed to give quick profit calculations based on cost and selling price. The revolving part of the device acts as a type of slide rule. Being small enough to carry in a pocket, it is a valuable aid in the market.
Buyflow – The communication network between all individuals involved in a buying decisions and actions that take place during the course of making the purchase decision.
Buygrid Framework -A conceptual model that describes the organizational buying process. It consists of two dimensions: buyclasses and buyphases. The buyclasses are new task prurchase, modified rebuy, and straight rebuy. The byphases are need recognition, need definition, need description, seller identification, proposal solicitation,proposal evaluation and selection, ordering procedures, and performance review.
Buying – (1) A marketing function devoted to the efficient acquisition of the materials and services needed for the operation of business. Includes the determination of the suitability of goods, proper price, an adequate source, and economic order and inventory quantities. Assists in the creation of possession utility. (2) Although the consumer usually does not analyze as painstakingly as the industrial user, he always has a reason valid to him for making his decision, e.g., to reach a goal, solve a problem,or otherwise achieve some personal satisfaction.
Buying Allowance – A form of trade sales promotion in which the retailers offered a discount on the purchase of the product at a particular point in time. The discount is often tied to the purchase of the particular number of units.
Buying by Description – Purchase for a verbal and/or visual picture of the product. May be from the catalog of the seller or from a set of specification developed by the buyer. To use this method satisfactorily, the buyer must have full confidence in the seller’s business honesty
Buying Calendar – A plan of a store buyer’s market activities, generally covering a six-month merchandising season based on a selling calendar that indicates planned promotional events.
Buying Center – The group of individuals that consists of all organizational members who are involved in any way, to any extent, in any phase of a specific buying decision.
Buying Committee – 1. (industrial definition) An officially appointed group that is responsible for purchasing goods and services. 2. (retailing definition) A committee that has the authority for final judgment and decision on such matters as adding and eliminating new products. It is especially common in supermarket companies and department store resident buying offices.
Buying Criteria – The factors considered by buyers in their evaluation of alternative suppliers, such as dependability, product quality, cost, vendor production capacity, after-sale service, vendor reliability and integrity, reciprocity, and emotional factors. They can be categorized as product-related, e.g., technical specifications; company related, e.g., reputation, and salesperson related, e.g., expertise and trustworthiness.
Cable Casting – A term sometimes applied to the programming originated by the CATV operator than the signal picked by the system.
Buying Decisions – The different buying situations a buyer would face in the course of purchasing a product or service to satisfy a need. Three buying decisions can be distinguished: 1. product decision, deciding on which product(s) will be purchased with available resources; 2. brand decision, deciding on which brand(s) will be purchased among competing brands of the same product; and 3. supplier decision, deciding on which supplier(s) will be patronized among competing suppliers.
Buying Influence -The buying center members or their sources of information who have influence upon the the other buying center members such that these other individuals can change in their behavior and/or attitudes in the process of making a specific buying decisions.
Buying Motives – The forces that have been activated into a state of tension causing the buyer to seek satisfaction of a specific need. Organizational buyers are influenced by both rational appeals (e.g., economic factors such as cost, quality, and service) and emotional appeals (e.g., status, security, and fear).
Buying Plan – A breakdown of the dollar open-to-buy figure of a department or merchandise classification to indicate the number or value of units to purchase in different classifications and subclassifications.
Buying Policy Index – A leading indicator of business activity, published monthly by National Bureau of Economic Research, based on the proportion of purchasing agents reporting their buying commitments for the months ahead.
Buying Power – 1. (consumer behavior definition) A term found in economic psychology implying the income available for discretionary spending among segments in the population. It is a measure of the ability and willingness to buy goods and services. 2. (industrial definition) Refers to the relative influence an individual or a job function (engineering, purchasing, production) has in a purchase decision. Power may be based on reward abilities (granting monetary or perceptual benefits), coercion (imposing punishment), legitimacy (formal authority), personality (based on individual characteristics or status), or expertise 9special knowledge or expertise).
Buying Period – the sum of the reorder period and the delivery period, under periodic stock counting methods of unit control.
Buying Roles – The activities that one or more person(s0 might perform in a buying decisions. Six buying roles can be distinguished: 1. initiator, the person who first suggests or thinks of the idea of buying the particular product or service; 2. influencer,a person whose views influence other member of the buying center in making the final decision; 3. decider, the person who ultimately determines any part of or the entire buying decision – whether to buy, what to buy, how to buy, or where to buy; 4.buyer, the person who handle the paper work of the actual purchase; 5. user, the person(s) who consumes or uses the product or service; and 6. gatekeeper, the person(s) who controls information or access, or both, to decision makers and influencers.
Buying Signal – A verbal or visual cue that indicates a potential customer is interested in purchasing a product or service. Comment: A buying signal indicates that a sale person should begin to close sale.
Buying Style – The way a customer buys a given product or service. Buying styles range from deliberate buying to impulsive buying.