This activity is important because you need to understand that the steps taken in a B$2$B buying situation require planning and formality. Needs are specified in writing, and potential suppliers are asked to submit formal proposals. A consumer buying situation commonly happens impulsively and without planning, and customers do not have the benefit of receiving formal performance evaluations$-$something they would typically receive in a business buying setting. As a result, customers may evaluate their purchase decisions and sometimes experience post$-$purchase dissonance.

The goal of this activity is for you to recognize the specific actions that take place during the B$2$B buying process, which parallels the consumer decision process but also differs in many ways.

First, read the case about Toyota's buying team's decision to select an alternative supplier for their off$-$road tires. Then, match each example to the corresponding step in the process.

The buying team at Toyota has recently selected an alternative supplier for off$-$road tires, after identifying a need to increase their tires' performance.

Toyota had begun hearing complaints from customers that the tires were not working well on their all$-$wheel$-$drive vehicles, and Toyota's own tests showed below par off$-$road performance. Toyota decided it was time to seek a new tire supplier. Working onsite with vendors, Toyota drew up a list of specifications describing the size and type of tires they needed. An RFP was posted on the website, publishing the product specifications and inviting producers to bid on supplying the tires. Once all proposals were in$,$ Toyota narrowed the field of potential suppliers down to three, ensuring continued competition among the bidders, and finally selected Goodyear because it offered the best combination of benefits. Goodyear received an order including a detailed description of the tires, the quantity needed, the price, the delivery date, and penalties for failure to deliver on any of these fronts. A few months later, the buying team at Toyota evaluated Goodyear's performance on key issues such as off$-$road performance and on$-$time delivery.

Proposal Analysis,

$2$

Negotiation, Selection

Product

$6$

Specification

$3$

Need Recognition

$4$

RFP Process

Vendor Performance Assessment

Order Specification