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 (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
 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