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PART V: ORGANIZATIONS AS CONSUMERS

PART V: ORGANIZATIONS AS CONSUMERS. Organizational Purchase Process. Steps in the Organizational Decision Process. Problem Recognition Information Search Evaluation and Selection Purchase and Decision Implementation Usage and Postpurchase Evaluation. Slide 7-9.

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PART V: ORGANIZATIONS AS CONSUMERS

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  1. PART V: ORGANIZATIONS AS CONSUMERS

  2. Organizational Purchase Process Steps in the Organizational Decision Process • Problem Recognition • Information Search • Evaluation and Selection • Purchase and Decision Implementation • Usage and Postpurchase Evaluation Slide 7-9

  3. Organizational Purchase Process Purchase Situation • Straight Rebuy • Modified Rebuy • New Task Slide 7-9

  4. Organizational Purchase Process Purchase Situation • Straight Rebuy • Straight rebuy - occurs when the purchase is of minor importance and is not complex—no consideration is given to strategic issues. • The reordering process may be completely automated or done routinely by clerical personnel. • Such purchases are often handled under a contract and price or reliability tend to be the dominant evaluative criteria.

  5. Organizational Purchase Process Purchase Situation • Modified Rebuy • Modified rebuy - used when the purchase is moderately important to the firm and/or the choice is more complex. Strategic issues begin to play a role. • Typically a product the organization is accustomed to purchasing but the product or the firm’s needs have changed. • The DMU is likely to include several representatives, including midlevel managers and evaluative criteria are analyzed.

  6. Organizational Purchase Process Purchase Situation • New Task • New task - tends to occur when the buying decision is very important and the choice is quite complex. Strategic issues will be of prime importance. • The buying organization will typically have had little experience with the product or service. • The DMU evolves over time and will be large. • Top management will be involved.

  7. Process Model Organizational Needs Clear, concise, tractable Appropriate, affordable, timely choice, speed, risk handled Individual’s Needs info, time, design assistance info, convenience, assurance Need assessment Develop choicecriteria Request forproposals

  8. Process Model Organizational Needs speed, easy, comprehensive ease, speed,good deal user friendly, effective, maintain-able Individual’s Needs assurance ofaccuracy easy, assurance of good choice easy to use, recognition Supplierevaluation Supplierselection Fulfillment andmonitoring

  9. Roles in the Buying Center • Gatekeeper • User • Buyer • Decider • Analyzer • Influencer

  10. Internal Factors Influencing Organizational Culture Organizational Values Below are eight common business values. How might these differ across organization? • Risk taking is admired and rewarded. • Competition is more important than cooperation • Hard work comes first, leisure second. • Individual efforts take precedence over collective efforts. • Any problem can be solved. • Active decision making is essential. • Change is positive and is actively sought. • Performance is more important than rank or status.

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