Chapter 3.

Organizational Buying Behavior

the salient dimensions of how organizations buy Understanding the organizational buying process is a key prerequisite for the development of business marketing strategy
L.P. CHEW

examine an eight stage model of the organizational buying process



The eight stages may be contracted depending upon the nature of the purchasing situation. The next focus of the chapter is a discussion of the types of buying situations which occur in organizational buying. These include "new task," "straight rebuy," and "modified rebuy."

Organizational Buying Process Eight stage model of the organizational buying process Problem recognition
Determine product dimensions and quantity Precise description of product characteristics Search and qualification of potential sources Acquisition and analysis of proposals Evaluation of proposals and supplier selection Selection of an order routine Performance feedback and evaluation

New task Firm has no experience in purchasing the product; requires extensive problem solving
Strong predispositions toward suppliers do not exist Two distinct buying decision approaches are employed Judgmental new task: when unfamiliar with parts, technology, etc. Strategic new task: when decision is extremely important to the firm

Straight rebuy A recurring requirement; buyers have substantial experience with the purchase
Information needs are low; little need to evaluate alternative solutions Routinized response behavior; selection of vendor from a list of acceptable vendors Choice criteria are well developed Strong predisposition to certain suppliers

Modified rebuy Buyer perceives benefits from a reevaluation of alternatives

LIMITED PROBLEM SOLVING
THERE ARE TWO TYPES

SIMPLE COMPLEX
Complex: involves a large set of choice alternatives

IN VS OUT SUPPLIER

Forces Shaping Organizational Buying Behavior ENVIRONMENTAL  ORGANIZATIONAL  GROUP  INDIVIDUAL



ORGANIZATIONAL GROUP INDIVIDUAL

INSIGHTS  POWER  INFLUENCE  POLITICAL  VALUE  ROLE  GROUP

and now MR. ROGERS THEORY OF ADOPTION, DIFFUSION and INNOVATION

The foldable lens OPTHALMIC OPINION LEADERS and other adopter groups. Remember your bell curve. Lets relive it! Not Fred but Everett !!!!!!

BA 303

LPC1@umsl.edu