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Copyright 2006 The McGraw-Hill Companies, Inc. All rights reservedMcGraw-Hill/Irwin
Chapter Four
Organizational Buyer Behavior
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SELLING BUSINESS TO BUSINESS SUCCESSFULLY.UNDERSTANDING WHAT MAKES BUYERS BUY
THE THEORIES OF BUYER MOTIVATION
REWARD-MEASUREMENT THEORY
THINK: BENEFITS
BEHAVIOR CHOICE THEORY
THINK: SITUATION
ROLE THEORY THINK: NORMS / EXPECTATIONS
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BUYING CENTER ROLES
PERSON
SECRETARY
VICE PRESIDENT
OFFICE MANAGER
SECRETARY & OFFICEMANAGER
OFFICE MANAGER
VICE PRESIDENT OFOPERATIONS
ROLE
Initiator-reports that fax keeps breakingdown
Controller-sets budget for purchase ofnew fax
Gatekeeper-gathers review from vendors.
Influencers-view demonstrations narrowchoices
Recommender-recommends a particular
product to decision maker
Decision Maker Selects fax to purchase
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DIMENSIONS OF BUYING CENTERS
TIME DIMENSIONS TIME IS HIGHLY FRAGMENTED: Many participants for short time
participation
TIME IS NOT FRAGMENTED: Same people stay through entire process
VERTICAL DIMENSIONS
How many layers of management are involved in decision-making
HORIZONTAL DIMENSIONS
How many departments are involved in decision-making
FORMALIZATION DIMENSION
Purchasing tasks and roles are guided and enforcedbywritten procedures
and policies
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TIME FRAGMENTATION INFLUENCES SELLERSMARKETING EFFORTS
INVOLVEMENT INFLUENCE
NUMBER OF DECISION MAKERS
HIGHLY MANY FEW MINIMALLY
FRAGMENTED A LITTLE A LOT FRAGMENTED
DECISION CYCLE TIME INFLUENCE
SIZE OF BUYING CENTER
LONGER LARGE SMALL SHORTER
DECISION CYCLE A LITTLE A LOT DECISION CYCLE
EXPERIENCE OF DECISION MAKERSEXPERIENCE OF DECISION MAKERS
TIME SPENT ON DECISION STAGESTIME SPENT ON DECISION STAGES
Sales objective is to move to the right on the continuum
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RECOGNIZING THEBUYERS DILEMMA: RISK
THERE ARE THREE KINDS OF RISK TO OVERCOME
FINANCIAL RISK
POTENTIAL FOR LOST REVENUE WITH
FAULTY PRODUCT
PERFORMANCE RISK PRODUCT WONT PERFORM AS INTENDED
SOCIAL RISK
THE PURCHASE WILL NOT MEET APPROVAL OF A REFERENCE
GROUP
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OVERCOMING RISK
THREE OPTIONS BUYERS USE TO REDUCE RISK
GATHER MORE INFORMATION FROM MORE SOURCES
USING LOYALTY TO PRESENT SUPPLIERSBUILD
TRUST
SPREAD THE RISK BY USING MORE DECISIONMAKERS OR GETTING MORE SUPPLIERS
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USING INFORMATION TO REDUCE RISK
ImpersonalPersonal
Trade publications
Word of mouth from
colleagues,
consultants, and
coworkers
Noncommercial
Sales literature
Advertising
Websites
Direct mail
Personal selling
Trade shows
Telemarketing
Commercial
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BUYING DETERMINANTS THEORY
Individual
factors
Organizational
factors
Market factors
Environmental factors
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EXPANDED BUYING DETERMINANTS THEORY
Organizational Factors
Extrinsic reward
systemsRole expectations
Corporate culture and
intrinsic rewards
Cross-functional
purchasing teams
Policies supporting
vertical and
horizontal
dimensions
Individual factorsExperience: new buy straight rebuy
Choice of reward-Role orientation
Valence of reward
Probability perceptions
Environmental factorsMarket factors
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