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 Selection of Order Routine

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

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

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

Forces Shaping Organizational Buying Behavior

Environmental Forces Organizational Forces Group Forces Individual Forces

Forces on Organizational Buying

Environmental Forces

Economic influences
economy= Selective shifts

Technological influences

Foresee changes

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?

Forces on Organizational Buying

Group Forces Buying Center

Different people play different roles New task Straight rebuy/modified rebuy

Predicting Composition

Why?

Forces on Organizational Buying

Group Forces (contd)

Buying center influences

Users Gatekeepers Influencers Deciders Buyers Isolate personal stakeholders Follow flow of information Identify experts Trace connections to the top Understand purchasings role

Identifying patterns of behavior

Individual Forces

Differing Evaluative Criteria Responsive Marketing Strategy Information-processing Selective processing

Selective exposure Selective attention Selective perception Selective retention Perceived risk

Risk-reduction strategies

Two components