Consumer and organizational buying behaviour
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Transcript of Consumer and organizational buying behaviour
CONSUMER AND ORGANIZATIONAL BUYING BEHAVIOR
Group E-
Japneet Kaur
Gunjan Ahuja
Heena pura
Gunjeet Sodhi
ORGANISATIONAL BUYER BEHAVIOUR
‘The decision-making process by which formal organisations establish the need for
purchased products and services, and identify, evaluate, and choose among
alternative brands and suppliers’Kotler and Armstrong 1989
BUYING CENTERA buying center is all those individuals and groups
who participate in the purchasing decision-making process, who share common goals and the risks arising from the decisions .
UnexpectedSituational
Factors
UnexpectedSituational
Factors
Attitudes of
Others
Attitudes of
Others
EthicalDecision-
Making Unit of a
Buying Organization is Called
Its Buying Center.
Users Influencers
BuyersGatekeepers
Roles Include
Deciders
Approvers
BUYING CENTER:
Users •people in the organization who actually use the product or service.
Influencers • affect the buying decision,• usually by helping define the specifications for what
is bought.
Buyers •have the formal authority and responsibility to select the supplier and negotiate the terms of the contract.
Deciders •have the formal or informal power to select or approve the supplier that receives the contract.
Gatekeepers •control the flow of information to other members of the buying center.
TYPES OF BUYING SITUATIONS
Straight rebuyModified rebuyNew Task
Buying Situations
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.
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.
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.
OrganizationaBuying Process
1. Problem Recognition
2. General Description
of Need
3. ProductSpecifications
4. Supplier Search
5. Acquisitionand Analysisof Proposals
6. Supplier Selection
7. Selectionof
Order Routine
8. PerformanceReview
FORCES INFLUENCING ORGANIZATIONAL BUYING BEHAVIOR
EnvironmentalForces
OrganizationalForces
GroupForces
IndividualForces
OrganizationalBuying
Behavior
•Economic Outlook: Domestic & Global•Pace of Technological Change•Global Trade Relations
•Goals, Objectives, and Strategies•Organizational Position of Purchasing
•Roles, relative influence, and patterns of interaction of buyingdecision participants
•Job function, pastexperience, and buyingmotives of individualdecision participants
MAJOR INFLUENCES ON ORGANIZATIONAL BUYERS
THE NATURE AND SIZE OF ORGANIZATIONAL MARKETS
ONLINE BUYING IN OBBReasons:
1. Technology provides timely supplier information product availability technical specifications application uses price delivery schedules.
2. Technology substantially reduces buyer order processing costs.
3. Technology can reduce marketing costs, particularly sales and advertising expense, and broaden their potential customer base for many types of products and services.
ONLINE AUCTIONS: Seller puts an item up for sale Buyers bid in competition. As bidders increase, there is upward
pressure on price. Auction ends when a single bidder remains
E-Marketplaces: Virtual Organizational Markets
e-marketplaces •bring together buyers and supplier organizations.•make possible the real-time exchange of information, money, products, and services•Variety of names
• B2B exchanges• e-hubs
Independent e-marketplaces •charge a fee for service•Small business use to expand customer base•Exist in settings that have one or more of the following features
• Thousands of geographically dispersed buyers and sellers.
• Time sensitivity due to perishable offerings and changing technologies.
• Easily comparable offerings from a variety of suppliers