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BUYER BEHAVIOR

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The Process of a Buyer's Search for a Source of Supply. STIMULUS ... Ego-enhancement. Perceived Risk. Dyadic Influence. Buying Influences. Diffusion Process ... – PowerPoint PPT presentation

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Title: BUYER BEHAVIOR


1
BUYER BEHAVIOR
  • Dr. Metzner

EMGT451 LECTURE 12 2/2004
2
BUYGRID MODEL
  • BuyPhases
  • BuyClasses
  • Buying Centers

3
BUYING CENTER ROLES
  • INITIATOR
  • INFLUENCER
  • DECIDER
  • APPROVER
  • BUYER
  • USER
  • GATEKEEPER

4
The Organizational Consumers Decision Process -
Sheth
  • EXPECTIONS OF ENGINEERS
  • PURCHASING
  • AGENTS
  • USERS
  • OTHERS

SITUATIONAL FACTORS
SUPPLIER OR BRAND CHOICE
AUTONOMOUS DECISIONS
PRODUCT SPECIFIC FACTORS
BUYING PROCESS
CONFLICT RESOLUTION
JOINT DECISIONS
BUYER SPECIFIC FACTORS
5
CONFLICT RESOLUTION
  • Problem-Solving
  • Persuasion
  • Bargaining
  • Politicking

6
Webster-Wind Model of Organizational Buyer
Behavior
ENVIRONMENT
ORGANIZATION
BUYING CENTER
INDIVIDUALS
BUYING DECISION PROCESS
BUYING DECISION
7
The Process of a Buyers Search for a Source of
Supply
STIMULUS
YES
SEARCH MEMORY POSSIBLE SUPPLIER?
CONTACT SOURCE
NO
SEARCH FILES CATALOGS POSSIBLE SUPPLIER?
CAN THE SOURCE PROVIDE THE NEEDED ITEMS?
NO
SEARCH WITH OTHER BUYERS POSSIBLE SUPPLIER?
NO
NO
CAN SOURCE SUGGEST ALTERNATIVES?
YES
SEARCH WITH REPS SALESMEN POSSIBLE SUPPLIER?
NO
NO
SEARCH WITH RD ENGINEER POSSIBLE SUPPLIER?
SHALL THE BUYER CONCLUDE SEARCH?
NO
SEARCH WITH OTHER PEOPLE POSSIBLE SUPPLIER?
YES
NO
BUY
BUY
8
Major Elements of Organizational Buyer Behavior
Set of Alternatives
Buying Center
Sources of Information
Environmental Constituents
Organizational Requirements
Feasible Alternatives
Individual Preferences
Evaluation Criteria
Organizational Preferences
Interaction Structure
Organizational Choice
9
Summary of Models of Organizational Buying
Behavior
  • Task Models
  • Non-Task Models
  • Complex Models

10
TASK MODELS
  • Minimum Price
  • Life-Cycle Cost
  • Rational Buyer
  • Materials Management (JIT, MRP)
  • Reciprocal Buying

11
NON-TASK MODELS
  • Ego-enhancement
  • Perceived Risk
  • Dyadic Influence
  • Buying Influences
  • Diffusion Process

12
COMPLEX MODELS
  • BuyGrid
  • Decision Models
  • Sheth
  • Webster-Wind

13
INDUSTRIAL PRODUCT TYPES
  • INSTALLATIONS
  • ACCESSORIES
  • RAW MATERIALS
  • PROCESSED MATERIALS
  • COMPONENTS (CATALOG ITEMS)
  • FABRICATED ITEMS
  • SUPPLIES (MRO)
  • SERVICES

14
Engineering Management 451
Advanced Marketing Management
Next Lecture Market Planning
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