5+ +Industrial++Buying+Behaviour+Models

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Industrial Industrial Buying Buying and and Buying Buying Behaviour Behaviour Models Models

Transcript of 5+ +Industrial++Buying+Behaviour+Models

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Industrial BuyingIndustrial Buying

andand

BuyingBuying Behaviour Behaviour

Models Models

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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

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Buying Orientation

1. Lowest Price

2. Gain Power in the Market in

terms of USP and Product

Features

3. Minimizing Risk

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Procurement Orientation

Collaborative Relationship

Timely Delivery

Working Closely with other

functional areas

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Supply Chain Management

Deliver value to end user.

Outsource Non-core activities.

Support Collaborative

Relationship.

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Major Consideration for Purchase Decision

1. Consistency of Quality

2. Lowest price

3. Time Saving

4. Assurance of Supply

5. Suppliers Relationship

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Types of Purchases 1. New Tasks - Prospecting and Lead generation - Vendor Development - Short listing of the Vendors / Suppliers 2. Repeat Purchases3. Modified Re-buy

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Buying Decision Models

Webster and Wind’s Model1. Superiority of Organizaional Variables2. Followed by the Attitudinal

Variables3. Work- Specification

Variables4. Price Variables

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Webster and Wind Model

EnvironmentalVariables

OrganizationalVariables

Buying CentreVariables

IndividualVariables

OrganizationalBuying

Decisions

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Environmental Variables

1. Competitive Practices andPressures

2. Suppliers Information

3. Customer Demands

4. Technological

5. Labour Issues

6. Laws and Regulations

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Organizational Variables

1. Objectives and Goals

2. Organizational Structure

3. Purchase Policies andProcedure

4. Degree of Decentralization

5. Evaluation and Reward System

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Buying Center Variables

1. Authority and Role

2. Size

3. Resources

4. Key Influencers

5. Interpersonal Relationship

6. Communication

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Personal Variables

1. Personal Goals

2. Education and Expertise

3. Experience

4. Values

5. Job Position

6. Income

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Webster and Wind Model

Strengths

Comprehensive Generally Applicable

Analytical

Identifies Key Variables

Helpful in Developing Industrial marketing Strategies

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Webster and Wind Model

Weakness

Model is Weak in Explaining

the Specific Influence of Key

Variables

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Sheth Model

Prof. Jagdish n. Sheth (1973)

Emphasizes on Joint DecisionMaking by Two or Moreindividuals

Psychological Aspect of Decision Making IndividualsIn the Industrial BuyingBehaviour

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Sheth Model (1) Differences

Among IndividualBuyers

(2) Autonomous Or Joint Decisions

(3) Methods UsedFor ConflictResolution

Situational Factors

OrganizationalBuying

Decisions

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Personal Variables

1. Personal Goals

2. Education and Expertise

3. Experience

4. Values

5. Job Position

6. Income

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Personal Variables

1. Background

2. Information Source

3. Active Search

4. Perceptual Distortion

5. Satisfaction With PastPurchases

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Product SpecificFactors

1. Time Pressure

2. Perceived Risk

3. Type of Purchases

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Company SpecificFactors

1. Company Size

2. Company Orientation

3. Degree of Centralization

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Conflict Resolution

1. Problem Solving

2. Persuasion

3. Bargaining

4. Politicking

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Sheth Model (1) Differences

Among IndividualBuyers

(2) Autonomous Or Joint Decisions

(3) Methods UsedFor ConflictResolution

Situational Factors

OrganizationalBuying

Decisions