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Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc.

c. All rights reserved.


Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
2. General
1. Problem 3. Product
Description
Recognition Specifications
of Need

5. Acquisition
4. Supplier Organizational and Analysis
Search Buying Process of Proposals

7. Selection
6. Supplier 8. Performance
of
Selection Review
Order Routine

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Three Buying Situations
(slide 1 of 4)

1. New task
2. Modified rebuy
3. Straight rebuy

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Three Buying Situations
1. New Task (slide 2 of 4)
• New task—the problem or need is totally
different from previous experiences.
– Significant amount of information is required.
– Buyers operate in the extensive problem
solving stage.
• Buyers lack well defined criteria.
• Lack strong predispositions toward a
solution.

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Three Buying Situations
2. Modified Rebuy (slide 3 of 4)
• Modified rebuy—decision makers feel there
are benefits to be derived by reevaluating
alternatives.
– Most likely to occur when displeased with
the performance of current supplier.
– Buyers operate in the limited problem
solving stage.
• Buyers have well defined criteria.

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Three Buying Situations
3. Straight rebuy (slide 4 of 4)
• Straight rebuy—the problem or need is a
recurring or continuing situation.
– Buyers have experience in the area in
question.
– Require little or no new information.
– Buyers operate in the routine problem
solving stage.

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Buying Decision Approaches

Causal purchases…involve no information search or analysis.

Routine low priority…decisions are more important and


involve a moderate amount of analysis.

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• Enables individual employees to buy online while the
company retains control of the purchasing process.

The Buy-Side Requisitioning Process

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Forces Influencing Organizational Buying
Behavior
•Economic Outlook:
A projected change in Domestic & Global
business conditions •Pace of Technological
can drastically alter Environmental
Change
buying plan. Forces
•Global Trade Relations

•Goals, Objectives, and


Organizational Strategies
Forces •Organizational Position
Organizational of Purchasing
Buying
Behavior •Roles, relative
Group influence, and patterns
Forces of interaction of buying
decision participants

•Job function, past


Individual experience, and buying
Forces motives of individual
decision participants
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The Buygrid Framework for Organizational Buying Situations

With rising competitive pressures


managers are using rigorous cost
modeling approaches to identify
factors that drive the cost of
purchased goods and services.

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Questions for the Industrial Salesperson

• Which member takes part in the buying


process?
• What is each members relative influence in the
decision?
• What criteria is important to members in the
evaluation process?

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Members of the buying center assume different roles
throughout the procurement process.

Clues for
Identifying
Powerful
Buying
Center
Members

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Selective Process & Cognition

 Selective exposure.
 Selective attention.
 Selective perception.
 Selective retention.

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Perceived Risk Components

1. Uncertainty about the outcomes


of a decision.
2. The magnitude of
consequences associated with
making the wrong selection.

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Major Elements of Organizational Buying Behavior

The behavior of
organizational buyers
is influenced by
environmental,
organizational, group,
and individual factors.

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