5+ +Industrial++Buying+Behaviour+Models
Transcript of 5+ +Industrial++Buying+Behaviour+Models
Industrial BuyingIndustrial Buying
andand
BuyingBuying Behaviour Behaviour
Models Models
Communicating BenefitsCommunicating Benefits
Customer BenefitCustomer Benefit
Competitive PriceCompetitive Price
High QualityHigh Quality
JIT DeliveryJIT Delivery
Willingness for ChangesWillingness for Changes
Factory at 4 LocationsFactory at 4 Locations
E- CommerceE- Commerce
Customized ManufactureCustomized Manufacture
24/7 Response24/7 Response
SellerSeller
Buying CenterBuying Center
C F OC F O
F M/P M / ForemanF M/P M / Foreman
C E OC E O
Purchase ManagerPurchase Manager
Marketing ManagerMarketing Manager
Logistics OfficerLogistics Officer
Warehouse ManagerWarehouse Manager
Maintenance Mgr.Maintenance Mgr.
BuyerBuyer
Buying Orientation
1. Lowest Price
2. Gain Power in the Market in
terms of USP and Product
Features
3. Minimizing Risk
Procurement Orientation
Collaborative Relationship
Timely Delivery
Working Closely with other
functional areas
Supply Chain Management
Deliver value to end user.
Outsource Non-core activities.
Support Collaborative
Relationship.
Major Consideration for Purchase Decision
1. Consistency of Quality
2. Lowest price
3. Time Saving
4. Assurance of Supply
5. Suppliers Relationship
Types of Purchases 1. New Tasks - Prospecting and Lead generation - Vendor Development - Short listing of the Vendors / Suppliers 2. Repeat Purchases3. Modified Re-buy
Buying Decision Models
Webster and Wind’s Model1. Superiority of Organizaional Variables2. Followed by the Attitudinal
Variables3. Work- Specification
Variables4. Price Variables
Webster and Wind Model
EnvironmentalVariables
OrganizationalVariables
Buying CentreVariables
IndividualVariables
OrganizationalBuying
Decisions
Environmental Variables
1. Competitive Practices andPressures
2. Suppliers Information
3. Customer Demands
4. Technological
5. Labour Issues
6. Laws and Regulations
Organizational Variables
1. Objectives and Goals
2. Organizational Structure
3. Purchase Policies andProcedure
4. Degree of Decentralization
5. Evaluation and Reward System
Buying Center Variables
1. Authority and Role
2. Size
3. Resources
4. Key Influencers
5. Interpersonal Relationship
6. Communication
Personal Variables
1. Personal Goals
2. Education and Expertise
3. Experience
4. Values
5. Job Position
6. Income
Webster and Wind Model
Strengths
Comprehensive Generally Applicable
Analytical
Identifies Key Variables
Helpful in Developing Industrial marketing Strategies
Webster and Wind Model
Weakness
Model is Weak in Explaining
the Specific Influence of Key
Variables
Sheth Model
Prof. Jagdish n. Sheth (1973)
Emphasizes on Joint DecisionMaking by Two or Moreindividuals
Psychological Aspect of Decision Making IndividualsIn the Industrial BuyingBehaviour
Sheth Model (1) Differences
Among IndividualBuyers
(2) Autonomous Or Joint Decisions
(3) Methods UsedFor ConflictResolution
Situational Factors
OrganizationalBuying
Decisions
Personal Variables
1. Personal Goals
2. Education and Expertise
3. Experience
4. Values
5. Job Position
6. Income
Personal Variables
1. Background
2. Information Source
3. Active Search
4. Perceptual Distortion
5. Satisfaction With PastPurchases
Product SpecificFactors
1. Time Pressure
2. Perceived Risk
3. Type of Purchases
Company SpecificFactors
1. Company Size
2. Company Orientation
3. Degree of Centralization
Conflict Resolution
1. Problem Solving
2. Persuasion
3. Bargaining
4. Politicking
Sheth Model (1) Differences
Among IndividualBuyers
(2) Autonomous Or Joint Decisions
(3) Methods UsedFor ConflictResolution
Situational Factors
OrganizationalBuying
Decisions