Objectives

How

Business & Consumer Markets Differ

Organizational Buying Situations
Participants in the Business Buying
Process
Major Influences on Organizational Buyers
Business Buyer Decision Making
Institutional & Government Buying
2000 Prentice Hall

Business vs. Consumer

Markets
Fewer

buyers
Larger buyers
Close supplier-customer relationship
Geographically concentrated
Derived demand
Inelastic demand
Fluctuating demand
2000 Prentice Hall

Business vs. Consumer

Markets
Professional

purchasing
Several buying influences
Multiple sales calls
Direct purchasing
Reciprocity
Leasing

2000 Prentice Hall

Involved Decision Making

New
New Task
Task Buying
Buying

2000 Prentice Hall

Custom furniture
Installed components
Buildings
Weapon systems

Modified
Modified Rebuy
Rebuy

Utilities
Office Supplies
Bulk chemicals

New vehicles
Elec. Equip
Consultants
Computer equip.

Straight
Straight Rebuy
Rebuy

Participants in the Business

Buying Process
Users
Initiators

Influencers
Gatekeepers

Buyers

Deciders
Approvers

2000 Prentice Hall

Major Influences on
Industrial Buying Behavior
Environmental
Level of
demand
Economic
outlook
Interest rate
Rate of technological change
Political and
regulatory
developments
Competitive
developments
Social responsibility concerns
2000 Prentice Hall

Organizational
Interpersonal
Objectives
Policies
Procedures

Interests
Authority
Status

Organizational
Empathy
structures
PersuasiveSystems
ness

Individual

Age
Income
Business
Education
Buyer
Job position
Personality
Risk attitudes
Culture

Organizational Factors

PurchasingDepartment
Upgrading

Internet
Purchasing

2000 Prentice Hall

CrossFunctional
Roles

Centralized
Purchasing

Decentralized
Purchasing
of Small
Ticket Items

Long-Term
Contracts

PurchasingPerformance
Evaluation &
Pro. Buyers

Lean
Production

Need
Recognition

Info
Search/
Eval
Purchase
Post
Purchase
2000 Prentice Hall

Problem
Problem Recognition
Recognition
General
General Need
Need Description
Description
Product
Product Specification
Specification
Supplier
Supplier Search
Search
Proposal
Proposal Solicitation
Solicitation
Supplier
Supplier Selection
Selection
Order
Order Routine
Routine Specification
Specification
Performance
Performance Review
Review

Institutional
Institutional Markets
Markets
Low
Low Budgets
Budgets

2000 Prentice Hall

Captive
Captive Patrons
Patrons

Government
Government Markets
Markets
Domestic
Domestic Suppliers
Suppliers

Public
Public Review
Review

Cost
Cost Minimization
Minimization
Paperwork
Paperwork

2000 Prentice Hall

Open
Open Bids
Bids

Review
How

Business & Consumer Markets Differ

Organizational Buying Situations
Participants in the Business Buying
Process
Major Influences on Organizational Buyers
Business Buyer Decision Making
Institutional & Government Buying
2000 Prentice Hall