2.7 Test Your Knowledge

Producers are companies or organizations that buy parts or ingredients to make a product or service.
Resellers are companies or organizations that buy finished products or services to sell them to other companies or consumers.
Organizations are government or nonprofit groups that buy products or services for consumption or to be sold to companies or consumers.

Size of purchases, multiple buyers, number of customers, and geographic concentration.

A building that bears the company name; doing business with only those companies that have the best reputations, such as McKinsey & Company; hiring only people who have an Ivy League education.

False. B2B decisions are dominated by emotions, especially trust and fear.

False. Although the initiator may be the decision maker, that is not always the case, especially in complex B2B buying decisions.

Need recognition includes the realization that there is a need for the product or service. The need might be identified by a user or anyone else inside the organization or by a customer.

The request for proposal is part of step four: searching for appropriate suppliers.

Feature, advantage, benefit is used in B2B and B2C selling and is used to appeal to a customer’s emotions as in “what will this product or service do for me.”