17–1 Chapter 17 Business-to-Business Buying Behaviour Similarities and differences between...

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17–1 Chapter 17 Business-to- Business Buying Behaviour Similarities and differences between consumer/household behaviour and the behaviour of businesses Analysing business buying behaviour and developing marketing strategies Types of purchase decisions by large and complex organisations, and approaches used Adapting consumer behaviour concepts to understanding business buying behaviour Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

Transcript of 17–1 Chapter 17 Business-to-Business Buying Behaviour Similarities and differences between...

17–1

Chapter 17 Business-to-Business Buying Behaviour

• Similarities and differences between consumer/household behaviour and the behaviour of businesses

• Analysing business buying behaviour and developing marketing strategies

• Types of purchase decisions by large and complex organisations, and approaches used

• Adapting consumer behaviour concepts to understanding business buying behaviour

Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

17–2

Overall Model of Organisational Buying Behaviour

17–3

Organisational Culture and Organisational Decisions

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External Factors Influencing Culture: Organisational Demographics

• Organisational characteristics– size– activities and objectives– location– industry category

• Organisational composition characteristics– gender– age– education– income distribution of employees

Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

17–5

Reference Groups

• Like consumer behaviour, organisational behaviour and purchasing decisions are influenced by reference groups

• In industrial markets, the most powerful type of reference group is that of lead users

• Trade associations• Financial analysts

Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

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Lead Users

• Lead users are innovative organisations that derive a great deal of their success from leading change

• As a result, their adoption of a new product, service, technology, or manufacturing process is watched and emulated by the majority

Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

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Role of Lead Users in Encouraging Development and Adoption of Online Services

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Internal Factors Influencing Organisational Culture: Organisational Values

• Different values create different corporate cultures– IBM versus Apple

IBM is corporate, formal and takes itself seriously Apple is less formal, creative and promotes a more open

organisational style

Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

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Organisational Values that Influence Organisational Culture

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Internal Factors Influencing Organisational Culture

• Shared values and value conflicts• Perception• Motives and emotions—organisational decisions

tend to be less emotional than many consumer purchase decisions

• Learning—organisations learn through their experiences and perceptions

Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

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Personal, Organisational and Shared Values

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Perception

the critical activity that links individual consumers to group, situation, and marketer influences

Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

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Motives and Emotions

• Firms have objectives for purchasing, and therefore a rational approach to purchasing

• Can appeal to the emotions of the individuals making the decision

• Develop a communication to ‘excite’ the buyers

Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

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Learning

• Like individuals, organisations learn• Seen as guidelines and policies for purchasing• Can be cognitive or experiential

Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

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The Impact of Advertising on Sales

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Unlearning High-Involvement Negative Experiences

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Types of Organisational Decisions and High-/Low-Involvement Processes

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The Organisational Purchase Process: Purchase Situation

• Straight-rebuy– low-involvement decisions– made by a single person in

the organisation

• Modified re-buy– decision requires more

effort and includes more people because of modification to the product, delivery, price or terms and conditions

• New task– first-time buy– lots of individuals

influencing and involved with decision-making process

Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

17–19

Organisational Decision Process

Problem recognitionProblem recognition

Information searchInformation search

Evaluation and selectionEvaluation and selection

Purchase and decision implementationPurchase and decision implementation

UsageUsage

Postpurchase evaluationPostpurchase evaluation

Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

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Purchase and Postpurchase Evaluation

• Purchase implementation• Payment• Postpurchase evaluation• Customer satisfaction

Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

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Next Lecture…

Chapter 18:

Consumers and Society

Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins