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Chapter Four
Organizational Buyer Behavior

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Key Points
• Reward-Measurement Theory • Behavior Choice Theory • Role Theory • Buying Determinates Theory

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Reward-Measurement Theory
• M=V*P • Intrinsic rewards • Extrinsic rewards • Valence • Perceived probability • Motivation • Self-efficacy

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Complex Reward Structure
Complex Structure of Office Manager’s Rewards in Purchasing a Fax
• Reward • Importance  Raise  Very important  Recognition (pat on the  Important back) by boss  Peer’s appreciation  Very important  Personal satisfaction  Extremely  Nomination for staff important award  Important

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COULD THERE BE OTHER REWARDS?
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Behavior Choice Theory
• Buyers go througha choice decisions • Identify situation

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Company, self orientation

• Evaluate personal relevance • Assess action alternatives and requirements • Choose behavior strategy
 

Offensive Defensive

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Role Theory
• People behave within a set of norms or

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expectations of other due in the role in which they have been placed.
     

Autonomous v buying center (DMU) Initiator Controller Decision maker Influencers - users Gatekeepers

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Buying Center
• Time fragmentation • Vertical & Horizontal dimensions

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Layers of management

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Buying Center Roles
• Person
   

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• Role  Initiator – reports that fax keeps Secretary breaking down  Controller – sets budget for Vice President purchase of new fax  Gatekeeper – gathers and reviews Office Manager bids from vendors  Influencers – view demonstrations, Secretary & Office narrow choices Manager  Recommender – recommends a Office Manager particular product to decision maker  Decision Maker – Selects fax to Vice President of purchase. Operations

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Dimensons

4-9

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Buying Center
• Formalization dimension • Risk

410

Financial  Performance  Social

Reduce
 

Information Loyalty - Trust

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Information to reduce risk

411

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Buying Determinates Theory
• General theory on why buyers buy. • Individual • Selective  Process  Exposure  Attention  Perception  Retention

412

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Buying Determinants Theory

413

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Expanding the BD Theory

414

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