Buying Behaviour

Problem recognition description of need

Product specs Supplier search Supplier selection

Analysis of proposals

Delivery, Inspection

Performance review

Environmental forces
Organizational forces Group forces

Individual forces

Political Env
Economic Env by product of Political env

Economic influences
To be sensitive to the strength of demand

Technological influences
Rate of tech change influences the composition of the decision making unit

Understanding based on:

Strategic priorities Role of purchasing in the executive hierarchy Firms competitive challenges

Becoming business partners Exploring new value frontiers Put Suppliers inside

Pursuing low cost sources

 Role of purchasing in the executive hierarchy

Centralization vs decentralization

Firms competitive challenges

Understanding and developing a value proposition

Group: Seller to address following questions:

Which Org members take part in the buying process

What is each members relative influence in the decision What criteria are important to each member in evaluating prospective suppliers

Individual
Demographic factors Psychographic factors

If you are shooting for second place, your strategy is determined by the leader