estimate the demand and forecast sales.Q4. Contrast organizational buying behavior and consumer purchasing behavior. What are the primary differences and similarities? Business buying behavior takes place with in a formal organization with its budget, costs and profit considerations. The primary differences include excessive organizational steps, considering budget, costs, prioritizing techniques for purchase decision analyses.Where as, consumer-purchasing behavior includes knowledge of business buying situations and is influenced by peers and ads.Q5. Give examples of the effect of industrial market demand of derived demand, volatile demand, joint demand, inventory adjustments, and the accelerator principal.Derived demand:Demand for a business product that results from demand for a consumer product of which it is a component.Example:The growing global demand by food service firms for packs of Heinz ketchup, mustard, mayo, etc. is all driven by consumer’s appetite for their convenience and joy of dining out.Joint demand:Demand for a business product that depends on the demand for another business product that is necessary for the use of the first.Example:Coke and iron ore are required to make pig iron. If the coke supply falls, the drop in pig iron will affect the demand for iron ore.Volatile demand:Derived demand creates immense volatility in the business market demand.Inventory adjustments: Marketers in a particular industry consider a 60-day supply of raw materials to be the optimum inventory level. If economic factors induce these firms to increase there inventories to a 90-day supply. The change will bombard the raw material supplier with new orders.Accelerators principal:This disproportionate impact of changes in consumer demand on business market demand is called the accelerator principal.Q6. What is out sourcing? Explain the advantages and disadvantages of this practice.Outsourcing:Acquiring inputs from outside vendors fo...
