Business and Purchasing Terms

Retailer

• A business that sells goods to other businesses.

• A business that buys consumer goods or services and sells them to the ultimate consumer.

• A company that manufactures products for sale.

• A service provider that offers services to consumers.

Negotiation

• The process of one party reaching an agreement with another party to meet specific needs or wants.

• A method of conflict resolution that involves a third party.

• A formal discussion between two or more parties to settle a dispute.

• A strategy to manipulate others into agreeing with your point of view.

Transformation

• A change in the shape or appearance of an object.

• A process of making something smaller or less complex.

• A method of combining different elements into one.

• A technique for measuring physical properties.

Purchasing

• The act of selling goods and services to customers.

• The buying of goods and services for a business.

• The process of managing inventory levels.

• The evaluation of supplier performance.

Strategic planning

• Long-range planning (three to five years) for the company as a whole.

• Short-term planning (one year) focused on immediate goals.

• Operational planning for daily activities and tasks.

• Contingency planning for unexpected events.

Credentials

• Information about a person’s or business’s skills, abilities, and qualifications.

• A list of personal interests and hobbies.

• A summary of a person's favorite books and movies.

• A record of a person's social media accounts.

Wholesalers

• Intermediaries who help move goods between producers and retailers by buying goods from producers and selling them to retailers.

• Retailers who sell directly to consumers without intermediaries.

• Producers who manufacture goods for sale to wholesalers.

• Distributors who only handle the logistics of shipping goods.

Services

• Intangible activities that are performed by other people for money.

• Tangible products that can be touched and owned.

• Activities that require physical presence and interaction.

• Goods that are produced and sold in a market.

Make-or-buy decision

• The act of determining whether to produce a needed part or purchase it from a supplier.

• A strategy to minimize production costs by outsourcing all manufacturing.

• A method for evaluating the quality of suppliers before making a purchase.

• A decision-making process focused solely on reducing inventory levels.

Guarantee

• A promise made to the consumer that a product’s purchase price will be refunded if that product is not satisfactory; often called a money-back guarantee.

• A warranty that covers repairs for a specific period of time.

• A discount offered to customers for future purchases.

• A promotional offer that includes free shipping on orders over a certain amount.