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 Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Post Purchase Behavior

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 External Factors Inde
d s
ne e stan pende
er da nt
om ing sett rd
st Internal Factors ing s-
Cu buy org
aniz
and avior atio
ns
beh Technology Accounting
Management Marketing
e nt Legal Production/Mfg. Var
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ove ies Finance Service Pub
G nc lics
age

Stakeholders in each discipline within the buying

organization contribute expertise such that internal and
external factors are accommodated.
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 Involves more Buyers

 Stakeholders in Buying Center are

driven by professional responsibilities

 Different decisions occur

simultaneously within the Buying
Center
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1. Problem recognition

2. General need description

3. Product Specification

4. Supplier/Source search

5. Proposal solicitation

6. Selection

7. Make the transaction routine

8. Evaluate performance

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 Interaction is fluid and broad based
 Process is simultaneous, not sequential
 The “Track-Record” determines if supplier
is included in evoked set
 Relationships build loyalty

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 Organization Needs
o Benefits of the product or service
 Individual Needs
o Based on professional activities and
functions of the job
 Individual’s Personal Needs
o Career, quality of life, recognition

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 Process Flow Stages Buying Decision Process - Steps

 Problem recognition
Definition Stage  General need description
 Product specification

 Supplier/Source Search
Selection Stage  Proposal Solicitation
 Contract for supplier(s)

Deliver Selection Stage Make the transaction routine

 Evaluate performance
End Game Stage  Resell the job

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 The first attempt at describing a solution

 The intricacy of the solution and the number of organizational

units to be involved (size of the buying center) is determined

 Successful suppliers are involved, often in the development of

the Product Specification

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 Selection may have occurred in the Definition
Stage

 If a new buy, members of the buying center may

have a “favorite” supplier

 A modified or straight re-buy will likely include

the existing suppliers

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 Development activities customize the solution to
the specific technical needs (in addition to other
needs) of the customer – the Total Offering

 Meet the customer’s “way of buying” process –

integration of supply logistics with consumption
logistics

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 Reinforce customer decisions made in the
selection process

 Not the end of the process, but the beginning of

the next opportunity for the supplier to serve the
customer

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 Straight Re-Buy
› Buying situation that is routine
› Established solutions

 Modified Re-Buy
› Situation from New-Task Situation
› Limit exposure from competitive forces

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 A need not yet faced by Organization
 New offering with new technology
 Requires many sources of information
and assistance
 Utilizes complete buying process to
investigate alternatives

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 Yes. Then next
New Task purchase

Definition No. Then next Re-Buy

purchase
Definition
Selection
Selection
Is the buyer
satisfied?
Solution Solution
Delivery Delivery

End Game
End Game

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Straight Re-Buy Modified Re-Buy

Definition
Definition Define changes
to process
Selection Satisfied, Selection
No differences
Dissatisfied
Solution
Small Solution
Delivery
Difference Delivery
yes no
End Game
Is the buyer How different is End Game
satisfied? the next situation?

Large To New
Difference Task

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 Is the total of all impressions that a
customer has of the firm (whether
relevant to the buying situation)
 Is similar to product positioning that
occurs with consumer goods
 Needs to be maximized in the “mind” of
the buyer

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