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Decision Making UNit - Buying Center

The document discusses the decision making unit (DMU) in B2B marketing. It defines the DMU as individuals who participate in the purchase decision process. DMUs can vary in their composition, position in the firm, and decision making behavior. Key members of the DMU include initiators, deciders, influencers, users, gatekeepers, and buyers. The document also discusses task-based and emotional buyer behaviors as well as how to identify influential members of the DMU.

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Abhishek
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0% found this document useful (0 votes)
596 views9 pages

Decision Making UNit - Buying Center

The document discusses the decision making unit (DMU) in B2B marketing. It defines the DMU as individuals who participate in the purchase decision process. DMUs can vary in their composition, position in the firm, and decision making behavior. Key members of the DMU include initiators, deciders, influencers, users, gatekeepers, and buyers. The document also discusses task-based and emotional buyer behaviors as well as how to identify influential members of the DMU.

Uploaded by

Abhishek
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

B2B Marketing

Buying Centre
Decision Making Unit
The Decision Making Unit (DMU) consists of individuals who actively
participate in the purchase decision-making process

• DMUs may differ with respect to the composition and position within
the firm and with respect to their decision making behaviour
• DMUs may differ with respect to the importance they attach
• to the purchase of a particular item,
• the relative weight they attach to such purchase variables as price, quality
and service,
• their attitudes towards particular type of vendors and the
• specific rules they employ to seek and evaluate alternativeofferings.
Decision Making Unit-Members
Initiators: These are the individuals who first recognize the problem
Deciders:
• These are the people who make the final decisions
• may be senior managers or specialists.
• generally rely heavily on advice from other members of the DMU
• may never meet any representatives of the supplying companies

• Influencers: Individuals who could influence the purchasing decision


(Technical / Design Engineers / External consultants)
• supplying company’s viewpoint they are extremely difficult to identify
Decision Making Unit-Members
Users: These are the people who will be using the products which are
supplied
• They may be the initiator

Gatekeepers: Individuals who control the flow of information to the


members of buying center
• either by being proactive in collecting information, or by filtering it

Buyers: The individuals given the task of sourcing from the suppliers
• Obtains the quotations
• complete the administrative tasks necessary for buying
• Processing purchase order
• Managing order execution
• They may be the only contact a supplier’s salespeople have at the purchasing
organization
• These people often work to a specific brief, and may have very little autonomy
Task and Non-Task Buyer Behavior
Economic/ Rational (Task)
• Source Searching
• Vendor Evaluation
• Product cost management
• Purchase Price Analysis
Task and Non-Task Buyer Behavior
Emotional (Non-Task)
• Ego Enhancement
• Personal Risk Reduction
• Previous Experience
• Interpersonal relationship
• Buyers are affected by their liking or dislike for the suppliers’
representatives
• Buyers will often be working to their own agendas: for example
• a buyer might be seeking a promotion, or might feel threatened in terms of job
security, or may be conducting a vendetta with a colleague
• In general, members of a decision-making unit tend to be more risk-
averse than do consumers.
• This is because the buying center (DMU) members have more to lose
in the event of a wrong decision
• purchasing mistake can result in
• major negative consequences for the business
• loss of face at work
• dismissal
Identifying the members of DMU
• Determining the relative power of each member of the buying center
(DMU) for each purchasing situation is a difficult task
• Identify the personal stake holders- these people will exert more
influence
• Follow the information flow: Who are the members to whom all the
information is being given by all other members
• Identify the experts
• Identify the members who have connection to the top and are
powerful
• Understand purchasing dept. role

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