Corporate Buyer Behavior

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Chapter 5 Corporate Buyer Behavior
Hospitality and Tourism Marketing (372TXT or
372CIN)
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Competencies forCorporate Buyer Behavior

• Identify key factors that affect the HT
  purchasing decisions of business guests.
• Outline the process by which businesses make HT
  purchasing decisions, describe the stages in the
  purchase decision process, and identify marketing
  opportunities that arise during this process.
• Describe buying centers, the parties involved,
  and their roles.
• Describe marketing issues relevant to attracting
  the meetings market.

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Factors to Consider for Corporate Buyers

• Organization size, growth rate, and profitability
  
• Kind of business and the extent to which travel
  is a part of that business
• Location of headquarters, subsidiaries, and
  affiliates
• Criteria used to select suppliers
• Extent of loyalty to existing suppliers
• Impact of a critical incident in opening up a
  sale

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Factors to Consider for Corporate Buyers
(continued)

• People involved in making a decision
• Importance of personal networks
• Stages in the decision process
• Distinction between repeat buying and a new
  purchase
• Tension between a desire for something new and
  predictable service
• Interaction between senior managers and people
  making the purchase decision

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Types of Corporate Purchase Decisions

• Straight rebuy
• Modified rebuy
• New purchase

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Stages in the Corporate Purchase Decision Process

• Recognizing a problem
• Determining what is needed
• Specifying HT services
• Searching for suppliers
• Gathering proposals
• Evaluating and selecting suppliers
• Implementing the decision
• Evaluating the decision and giving feedback

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Buying Center Issues

• Power
• Perceptions
• Expectations
• Role orientation
• Perceptions of risk
• Motivation
• Information needs
• Education and training
• Habits of information searches
• Patterns of behavior in buying situations