Key Terms
Retailers
Sell to consumers in small quantities for personal consumption. Wholesalers: buy large quantities from producers; resell
Example
An executive assistant who controls access to the decision maker's calendar.
Economic factors
Interest rates, unemployment, personal income levels. Strong economy drives B2C demand up, which drives B2B demand up th
Political and legal factors
Government policies, tariffs, exchange rates, regulations. Laws can restrict what products can be sold in a market, dire
Competition
If a competitor changes its offering and gains market share, other businesses respond by changing their own product, tri
Social environment
Different members of the buying center bring different priorities, perspectives, and personal agendas; these social dyna
Business objectives and goals
Purchases must align with the company's current financial condition and strategic direction. Poor sales performance can
Technology
New purchases must be compatible with existing systems. Decision makers resist changing what already works.
Workforce skills
Employees must be able to use what is purchased; if they cannot, training must be factored into the decision.
Age
Generational differences affect confidence in purchasing decisions.
Education
More educated buyers tend to approach decisions more rationally. Job position: higher rank typically means more influenc
Technical expertise
In complex purchases, the person with the most relevant expertise carries disproportionate influence regardless of forma
Organizational politics and culture
Hierarchical organizations tend to push decisions upward. Culture shapes who has real power versus formal authority.
Financial condition
A cash-strapped organization may require supplier credit or choose a less expensive option even if it is not optimal.
Product availability
If a preferred supplier cannot deliver within required timelines, a buyer may pay more to work with a supplier who can.