2000 Prentice Hall

Objectives
How Business & Consumer Markets Differ
Organizational Buying Situations
Participants in the Business Buying
Process
Major Influences on Organizational Buyers
Business Buyer Decision Making
Institutional & Government Buying
2000 Prentice Hall
Business vs. Consumer
Markets
Fewer buyers
Larger buyers
Close supplier-customer relationship
Geographically concentrated
Derived demand
Inelastic demand
Fluctuating demand
2000 Prentice Hall
Business vs. Consumer
Markets
Professional purchasing
Several buying influences
Multiple sales calls
Direct purchasing
Reciprocity imbal balik
Leasing
2000 Prentice Hall

I
n
v
o
l
v
e
d

D
e
c
i
s
i
o
n

M
a
k
i
n
g



Modified Rebuy

New Task Buying


Straight Rebuy

Utilities
Office Supplies
Bulk chemicals


New vehicles
Elec. Equip
Consultants
Computer equip.


Custom furniture
Installed components
Buildings
Weapon systems


2000 Prentice Hall
Participants in the Business
Buying Process
Gatekeepers
Initiators
Buyers
Influencers
Deciders
Users
Approvers
2000 Prentice Hall
Major Influences on
Industrial Buying Behavior


Level of
demand

Economic
outlook

Interest rate

Rate of techno-
logical change

Political and
regulatory
developments

Competitive
developments

Social responsi-
bility concerns
Environmental
Objectives

Policies

Procedures

Organizational
structures

Systems
Organizational


Interests

Authority

Status

Empathy

Persuasive-
ness
Interpersonal

Age
Income
Education
Job position
Personality
Risk attitudes
Culture
Individual
Business
Buyer
2000 Prentice Hall
Organizational Factors
Purchasing-
Department
Upgrading
Cross-
Functional
Roles
Centralized
Purchasing
Decentralized
Purchasing
of Small
Ticket Items
Internet
Purchasing
Long-Term
Contracts
Purchasing-
Performance
Evaluation &
Pro. Buyers
Lean
Production
2000 Prentice Hall
Problem Recognition
General Need Description
Product Specification
Supplier Search
Proposal Solicitation
Supplier Selection
Order Routine Specification
Performance Review
Post
Purchase
Purchase
Info
Search/
Eval
Need
Recognition
2000 Prentice Hall
Institutional Markets
Captive Patrons Low Budgets
2000 Prentice Hall
Government Markets
Domestic Suppliers
Open Bids Cost Minimization
Public Review
Paperwork
2000 Prentice Hall
Review
How Business & Consumer Markets Differ
Organizational Buying Situations
Participants in the Business Buying
Process
Major Influences on Organizational Buyers
Business Buyer Decision Making
Institutional & Government Buying