Proj598-Week-3-Quiz1 Essay

Companies find opportunities in product innovation by providing new products and services to customers. This keeps current customers interested in doing business with the company and has the potential to attract new customers. Sometimes this is done by creating new products, greatly changing an existing product or by just changing the way the current product is presented. Another form of product innovation is branding. By creating a more positive brand image a company can keep the interest of consumers.

What was striking about the attitude of the seller. (name 3 attributes of behavior) 3 Points

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What is the probability of rolling a four in the gambling dice game of craps (given two six sided dice)? 3/36 or 8.33%. What is the probability that a player can roll a four 3 times in a row (assume that rolling the dice each time does not affect the outcome of the next roll)? 3/36 x 3/36 x 3/36 = 27/46656 = 3/5184

Whether the supplier can effectively push the buyer to accept higher price, earlier payment time or more reliable payment method.

Purchase of goods/services: At my job, the procurement manager is the one that decides the contract of vendors. He also decides what suppliers are to be used and approves all purchase

•For suppliers: The company does not ask so much money for what they sale and can give more money for what they want.

credit and payment policies as opposed to sales agents who do not purchase the merchandise and

* Whether the business reasons for the transaction have introduced a contingency to the buyer 's commitment.

• Strong sales team with the ability to successfully communicate the perceived strengths of the product

Bargaining power is a tricky one because it can work both ways. Buyers have a certain level of power in any industry. A buyer may switch suppliers very easily if there are no penalties and it is cost effective for them. If a large firm makes a large purchase of goods from another firm, it may be mutually beneficial and if serviced well, have the potential for repeat business. However, the buyer then has the power to use a substitute or competitor which would negatively affect the seller. Buyers are always the more powerful of the two because some buyers have the ability to put pressure on lower costs from suppliers, while demanding an increase of the quality of products or services provided to them. Also, the bargaining power in industries with high fixed costs like the airline industry can play a big factor. On the other hand, things like jet engines, tires and other key safety devices on aircrafts can cause severe consequences if this equipment malfunctions. For that reason, the buyer has a reduced amount of bargaining power with suppliers in this industry. The bargaining power of buyers is both high and low, so I ranked it medium.

The dealers, critical members of the Case team handled much of the inventory, assessed the credit of potential buyers, “missed church on Sunday” to fix broken equipment during the planting season, and handled all of Case’s used equipment (Case Corporation, 1997, pg. 7). Therefore, since the dealer has direct access to the consumer they are better able to assess the needs of the farmer. Many farmers have developed long personal relationships with their dealers, and were as loyal to the dealers themselves as they were to the product; to most customers, the dealer was Case (Case Corporation, 1997, pg.8). The dealer who has developed such working relationships can provide unfiltered information that cannot be otherwise obtained. Case can capitalize on such relationships by advising with the

Once the choice to offer has been created, the entrepreneur should be conscious of the wide range of possible company customers. Just as little company itself has become more innovative, the people enthusiastic about purchasing them have also become more divergent and complicated. The following are some of the present most effective groups of company buyers:

Agents might be exclusive, semi-exclusive and non-exclusive. Exclusive agents have specified area for sales, semi-exclusive handle companies goods with other companies non-competing goods, and non-exclusive handle other companies’ goods which might contain competing goods in term of

Buyers consist mainly of large entities such as mobile service providers, large companies, and governments. These entities purchase products and services in large volumes, and equipment costs form a significant part of their business expenses. Therefore, they can participate in negotiating a lower price, or move on to another competitor’s products and services. Although there are many products and services in the IT industry, there are high switching costs if a buyer decides to switch their IT networks. An entity would need to redesign their entire IT architecture, as these technologies are necessary to the success of businesses. Due to the many different product and service offerings, but high costs of switching, the buyer’s bargaining power is moderate.