Organizational

buying behavior
B2B Marketing
Organizational buying
behavior
 Consumer vs. Organizational buying
behavior
 Main types of buying situations in
B2B
 Stages of decision in B2B
 Roles in B2B procurement
 Influences on organizational behavior
 Buying centres in summary

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Consumer vs. Organizational
buying behavior
 Decisions made by consumers are quite simple
 Organizational buying processes are more
complicated, there are several phases and steps
 Different buying behavior for different products and
target groups
 Simple consumer goods like food and beverages are
bought very spontaneously – influenced by advertising
and product presentation
 For premium consumer goods (expensive clothes,
computers) – buying behavior is getting more rational
– comparison
 Private investment goods – price bargaining

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B2B products – organizational
procurement starts
 More than one person involved
 Buying process follows certain rules

 Price comparison, standardisation,

tenders = Ausschreibungen)

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B2B systems

 involve more capabilities and greater

workloads
 From the buyer‘s and the supplier‘s
side decision has more extensive
consequences

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B2B facilities

 Industrial plants
 Manufacturing installations

 Office buildings

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Main types of buying
situations in B2B
 Straigtht rebuy – routine decision, repetitive process
(energy, office supplies, raw materials, wood,
cigarettes), component suppliers for the automotive
industry – little or no new information
 Modified rebuy – more complicated but less
sophisticated: cars, trucks, computers, consulting –
modified rebuys are often treated too uncautious
 New task – calls for thorough research – industrial
plant – highest level of uncertainty. Strategic new tasks
are of extreme strategic and financial importance
(aircrafts, military equipment, infrastructure) – re-
evaluation of alternatives and search for new
information and new alternatives

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Buying phases

 Problem recognition
 General need description
 Product specification
 Supplier search
 Proposal solicitation
 Supplier selection
 Order routine specification
 Performance review

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Stages of decision in B2B
procurement
 Backhaus developed a widely usable model
to distinguish between 5 phases of
procurement
 Preliminary application (initiation phase)
 Tender proposal
 Negotiation
 Processing of order
 Warranty and services

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Preliminary application

 Recognition of a problem (need) and

a general solution
 Released by top management =
operating department or external
consultants
 Result  request for an offer
addressed to a number of potential
suppliers

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Tender preparation phase

 Determination of characteristics and

quantity of needed items
 Search for and qualification of potential
sources
 Supplier has to provide an offer
 Tries to be incomparable with his
competitors
 Customer tries to make the offer best
comparable

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Negotiation phase

 = core selling process

 Comprises acquisition and analysis of
proposals, evaluation of proposals
and selection of suppliers

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Processing phase/warranty/
service phase
 Contains selection of an order routine
 Realisation of the transaction along
with the fixation of after sales service
tasks

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Roles in B2B procurement –
buying center concept
 Group of people involved in the
buying process – buying center
 Webster/Wind model shows 5
different roles – not institutionalised
 This causes probleme in identifying
and targeting the right people within
the decision process

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Buying center

 Role keepers have different tasks –

not mandatory

 Buyer
 User
 Initiator
 Gatekeeper
 Influencer

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Buyer

 Formal authority to sign contracts

 Member of purchasing department

 Influences the vendor selection

 Not in technical details

 Main criteria: price + terms and

conditions of the contract

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User

 Person working with the product

 Interested in benefits and
unobstructed function of the product
to buy
 Large knowhow and preconceived
opinion

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Influencer

 A person with high technical

knowledge and practical experience

 definition of minimum requirements

on technical or company standards

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Gatekeeper

 Controls the flow of information within

the buying center
 Assistant of decision maker

 Influence by preparing the decision

and the relevant documents
(Scriptum p 33-34 + summary)

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Decider

 Right to say yes or no

 Mightiest person

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Initiator

 Person who brings new ideas and

solutions into the company

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Specific marketing
considerations in the industrial
facilities business
 Long decision taking process
 High risk

 Complex buying center

 The specific competitive situation

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Product policy

 Focuses on innovation
 Has to care for high flexibility in
research and development
 And manufacturing and assembling

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Price

 Strict bid and tender rules

 High transparency

 Add value with service offering to

achieve a differentiating position
 Another aspect: financing and
sourcing models

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Distribution policy

 Focus on negotiation phase

 Provide excellent people in the selling
center
 High technical knowledge

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Communication

 Problem solver!
 Proving success with comparable
tasks
 Reference projects!

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