Many business buyers prefer to buy a total solution to a problem from one seller.________ is the correct term for this process.
A) Channel consolidation
B) Systems buying
C) Vertical buying
D) Horizontal buying
E) Supply buying

Question

Quizplus · Accepted Answer

Systems buying refers to the practice of purchasing a complete solution to a problem from a single seller instead of buying individual components from multiple sources. This approach simplifies the procurement process, reduces the overall cost of ownership, and provides a guarantee that all the components will work seamlessly together. Hence, option B is the correct choice for this question.

Option A, Channel consolidation, refers to the process of reducing the number of intermediaries in a distribution channel to eliminate redundancies, improve efficiency, and increase profitability. This term is not related to the concept described in the question.

Option C, Vertical buying, refers to the practice of purchasing goods and services from suppliers and vendors who are involved in the same industry or value chain as the buyer. While this approach can provide benefits such as cost savings, quality assurance, and innovation, it is not the same as systems buying.

Option D, Horizontal buying, refers to the practice of purchasing goods and services from suppliers and vendors who are not directly involved in the buyer's industry or value chain. This approach can provide benefits such as diversification, risk reduction, and access to new markets or technologies, but it is not relevant to the concept described in the question.

Option E, Supply buying, is not a standard business term, and it does not accurately describe the practice of buying a total solution from one seller. Therefore, it is not the correct choice for this question.

Many Business Buyers Prefer to Buy a Total Solution to a Problem