A First-Time Purchase of a Product or Service by a Business-To-Business

question 19

Short Answer

A first-time purchase of a product or service by a business-to-business customer is a(n)________ buy.

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Definitions:

Vertical Integration

The involvement by a company in more than one of the activities in the entire value chain from development through production, distribution, sales, and after-sales service.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Supplier

A supplier is a person or company that provides goods or services to another entity, typically involved in the supply chain.

Traceable Fixed Costs

Fixed costs that can be directly associated with a specific cost object, such as a product, department, or project, and disappear if the cost object is eliminated.