Organisational Buyer Behaviour

7/30/2019 Organisational Buyer Behaviour

1/29

Industrial Marketing

Organisational Buyer

Behaviour


2/29

Purchasing Function Goals

To address the needs of business customers ofall types.

May have to juggle a number of different

objectives that clash.

The Goals ofPurchasing


3/29

Total Cost Considerations of aProduct or Service

Factors that drive total cost.

Acquiring and managing costs.

Quality, reliability over the life cycle.

The value a firm/ customers.


4/29


5/29

Government Procurement

1. Defense-said to be the largest enterprise

1. Other Governmental-procurement isadministered by variety of agencies.

2. These are guided by detailed written

procedures


6/29

Three Buying Situations(slide 1 of 4)

1. New task

2. Modified rebuy

3. Straight rebuy


7/29

Three Buying Situations1. New Task (slide 2 of 4)

New taskthe problem or need is totallydifferent 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.


8/29

Three Buying Situations2. Modified Rebuy (slide 3 of 4)

Modified rebuydecision makers feelthere 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.


9/29

Three Buying Situations3. Straight rebuy (slide 4 of 4)

Straight rebuythe problem or need isa 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.


10/29


11/29

Forces Influencing Organizational

Buying BehaviorEnvironmental

Forces

Organizational

Forces

Group

Forces

Individual

Forces

Organizational

Buying

Behavior

Economic Outlook:

Domestic & Global

Pace of TechnologicalChange

Global Trade Relations

Goals, Objectives, and

Strategies

Organizational Positionof Purchasing

Roles, relative

influence, and patterns

of interaction of buying

decision participants

Job function, past

experience, and buying

motives of individual

decision participants

A projected change in

business conditionscan drastically alter

buying plan.


12/29


13/29

Questions for the Industrial

Salesperson

1. Which member takes part in the buying

process?

2. What is each members relative influence

in the decision?

3. What criteria is important to members in

the evaluation process?


14/29

Members of the buying center assume different roles

throughout the procurement process.

Clues for

Identifying

PowerfulBuying

Center

Members


15/29


16/29

Perceived Risk Components

1.Uncertainty about the outcomes

of a decision.

2.The magnitude of

consequences associated withmaking the wrong selection.


17/29

Relationship MarketingCenters On:

Establishing,

Developing and

MaintainingSuccessful exchanges with

customers.


18/29

Stages of Relationship

Marketing1. Selecting customer accounts.

2. Developing account specific offerings.

3. Implementing relationships strategies.4. Evaluating relationship strategy

outcomes.


19/29


20/29


21/29

Types of Relationships

The buyer seller relationships are positioned on acontinuum with transactional exchange and

collaborative exchange serving as the end points.

The Relationship Spectrum

e a ons p pec c


22/29

e a ons p- pec cAdaptations

Involve:Investments in processes.

Investments in products.

Investments in procedures.


23/29

Market & Situational Factors(Slide 1 of 2)

1. Supply Market Dynamismconsiders

the variability in a firms supply market.

Typical Variations

changing technology

frequent price changes

product shortages


24/29

Market & Situational Factors(Slide 2 of 2)

2. Availability of Alternativesthe degree to

which alternative sources are available.


25/29

Buyers and sellers craft different types of relationships in response to:

a) market conditions and

b) characteristics of the purchase situation.

The Spectrum of Buyer-Seller Relationships


26/29

Strategy Guidelines

1. Determine which type of relationship matches the

purchasing situation and supply markets conditions for a

particular customer.

2. Develop a strategy that is appropriate for each strategy

type.


27/29

Strategy Guidelines & Customer

Collaborative

Customers.

Transactional

Customers.


28/29

Earning Customer Loyalty:How To

Provide superior value ensuring high

satisfaction.

Nurturing trust and mutual

commitments.


29/29

Retaining Customers Through:

Evaluating relationships.

Demonstrating

commitment.

Organisational Buyer Behaviour

Documents

Transcript of Organisational Buyer Behaviour