TWO topics are required for Week 8. Choose any TWO. Include at least two (2) references from learning material or outside sources. Reply to least two (2) classmate posts.
TOPIC 1: . Derived and Fluctuating Demand
The characteristic of B2B markets that is most opposite of B2C markets is the concept of derived and fluctuating demand. These concepts explain why when consumer purchasing goes down, the effect on the economy is multiplied by all the transactions that occur throughout the channels. A slowdown in consumer spending is not good for the economy.
Here are some examples of derived demand.
A good way to illustrate derived demand is with an example. Observe the increase in tourism that often occurs after a specific location is featured in a blockbuster movie. What businesses might be impacted? Airlines, hotels, AirBNB, restaurants, Uber, and tour guides, of course.
This happened with Mexico City following the release of the 2015 James Bond film Spectre which prominently featured the city in the opening sequence.
Following the success of the Bond film, Mexico City decided to create a “Day of the Dead” experience similar to the film’s opening sequence parade to entertain expected tourists. Companies outside of the typical travel space (e.g., artisans, craftspeople, construction workers) also had to increase capacity to meet this demand. That is derived demand.
Marcus, L. (2020, February 13). Made for travel: When tourists demand something to see. https://www.cnn.com/travel/article/purpose-built-tourist-attractions-intl-hnk/index.html
Can you think of another situation similar to the tourism effect in which derived demand was created by something that happened in the external environment, something that caused other companies to sell their products to meet new demand?
TOPIC 2: Buying Centers – Personal Application
Buying centers, sometimes called procurement, are where B2B buying decisions are made.
Consider your own workplace. Do you work for a company, the military, or at a nonprofit institution such as a hospital?
Describe your organization’s buying center and how it adds value by procuring what your organization needs to conduct its business and produce its own products or services?
How are the buying decisions made?
Include a link to your workplace if you have one. If you aren’t working, you may use a friend’s company or that of your significant other.
TOPIC 3: Customer Satisfaction Surveys
You might remember Joy Mead, associate director of marketing at Procter & Gamble, when she spoke about consumer behavior. Listen to this clip to hear Mead talk about the research techniques and methods Procter & Gamble uses to develop consumer insight. You will learn that the company isn’t just interested in what consumers want now but also years into the future.
Primary marketing research is generally used when all other options for gathering marketing data have been exhausted. It is very expensive, and sometimes the research itself is flawed in its design.
One of the areas of primary marketing research we are all familiar with is the customer satisfaction survey. Even this supposedly simple type of survey is difficult to design to elicit the most accurate responses from customers. Let’s get a little experience in question design.
Go to surveymonkey.com. Click on “Solutions,” then “Customer Satisfaction,” then on the Customer Satisfaction Survey Template, click “Preview.” On the right side, click on “Surveys 101.” (You should not have to sign up for an account to access this information.)
Scroll through the tutorial on survey design, paying special attention to the section on “How to Design a Survey.”
Then create one question you would ask UMGC students about this class for the purposes of improving the course, or measuring student satisfaction. The question type can be multiple choice, comment/essay, rating scale—your choice based on the objective of the question.
Give a few brief comments as to why you felt this question was an important measurement of customer satisfaction and why you chose the particular question format.