Organizational Buying Behavior

1
Organizational Buying Behavior
2
Organizational Buying vs. Consumer Buying

• Derived demand
• Fewer buyers
• Larger purchases
• Some geographic concentration among buyers

3
Organizational Buying vs. Consumer Buying (contd)

• Multiple buying influences
• Less likely to use middlemen
• Multiple sales calls
• Systems buying often used

4
Organizational Buying vs. Consumer Buying (contd)

• Professional buyers are often involved in the
  purchase
• Closer buyer-seller relationships
• More rational structured buying processes

5
Organizational Buying vs. Consumer Buying (contd)

• Reciprocity
• Leasing
• Sometimes influenced by make-or-buy options

6
Environmental factors influencing organizational
buying

• Internet purchasing
• Supply chain management
• Just-in-time delivery and lean production

7
Purchasing orientations

• Buying orientation
• Commoditization
• Multisourcing
• Procurement orientation -- product and service
  quality improvements combined with cost reductions

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Participants In The Organizational Buying Process

• Initiators
• Buyers
• Deciders
• Influencers
• Approvers
• Users
• Gatekeepers

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Organizational Buying Situations

• New task buying
• Straight rebuy
• Modified rebuy

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Stages In The Organizational Buying Process

• Problem recognition
• Need description and product specification
• Supplier search
• Proposal solicitation
• Evaluation and selection of products and
  suppliers
• Purchase decision
• Performance review

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Classifications of Industrial Goods

• Raw materials
• Component parts and materials
• Installations
• Accessory equipment
• Maintenance, repair, and operating supplies (MRO)
• Business services