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Organizational Buying Behavior

Organizational Buying Behavior. Chapter 3. Supplier-Buyer Relationship. Why work closely? How?. Organizational Buying Process. Problem Recognition General Description of Need Product Specifications Supplier Search Acquisition and Analysis of Proposals Supplier Selection

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Organizational Buying Behavior

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  1. Organizational Buying Behavior Chapter 3

  2. Supplier-Buyer Relationship • Why work closely? • How?

  3. Organizational Buying Process • Problem Recognition • General Description of Need • Product Specifications • Supplier Search • Acquisition and Analysis of Proposals • Supplier Selection • Selection of Order Routine

  4. Purchase Types • New Task • Problem or need is different from anything previously experienced • Lack well-defined criteria and supplier loyalty • Buying decision approaches • Judgmental new task situations • Strategic new task decisions • Business Marketer Strategy

  5. Purchase Types • Straight Rebuy • Continuing or recurring requirements • Routine problem solving • Operational resources • Buying decision approaches • Causal purchases • Routine low priority • Business Marketer Strategy • In-supplier • Out-supplier

  6. Purchase Types • Modified Rebuy • Believe can derive significant benefits by reevaluating alternatives • Limited problem solving • Buying decision approaches • Simple modified rebuy • Complex modified rebuy • Business Marketer Strategy • In-supplier • Out-supplier

  7. Forces Shaping Organizational Buying Behavior • Environmental Forces • Organizational Forces • Group Forces • Individual Forces

  8. Forces on Organizational Buying • Environmental Forces • Economic influences • ↓economy= • Selective shifts • Technological influences • Foresee changes

  9. Forces on Organizational Buying • Organizational Forces • Role of purchasing agents • Should it be centralized? • Benefits • Better integrate purchasing • Cut costs • Favorable terms • Work better with engineers • Specialization • When to centralize or decentralize?

  10. Forces on Organizational Buying • Group Forces • Buying Center • Different people play different roles • New task • Straight rebuy/modified rebuy • Predicting Composition • Why?

  11. Forces on Organizational Buying • Group Forces (cont’d) • Buying center influences • Users • Gatekeepers • Influencers • Deciders • Buyers • Identifying patterns of behavior • Isolate personal stakeholders • Follow flow of information • Identify experts • Trace connections to the top • Understand purchasing’s role

  12. Individual Forces • Differing Evaluative Criteria • Responsive Marketing Strategy • Information-processing • Selective processing • Selective exposure • Selective attention • Selective perception • Selective retention • Risk-reduction strategies • Perceived risk • Two components

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