Chapter 3.
Organizational
Buying Behavior
the salient dimensions of
how organizations buy
Understanding the
organizational buying
process is a key prerequisite
for the development of
business marketing strategy
L.P. CHEW
examine an eight stage model
of the organizational buying
process


The eight stages may be contracted
depending upon the nature of the
purchasing situation.
The next focus of the chapter is a
discussion of the types of buying
situations which occur in organizational
buying. These include "new task,"
"straight rebuy," and "modified rebuy."
Organizational Buying Process
Eight stage model of the
organizational
buying
process
Problem recognition
– Determine product dimensions and quantity
– Precise description of product characteristics
– Search and qualification of potential sources
– Acquisition and analysis of proposals
– Evaluation of proposals and supplier selection
– Selection of an order routine
Performance feedback and evaluation
New task
Firm has no experience in
purchasing the product; requires
extensive problem solving
– Strong predispositions toward suppliers do
not exist
–
Two distinct buying decision
approaches are employed
–
Judgmental new task: when unfamiliar
with parts, technology, etc.
–
Strategic new task: when decision is
extremely important to the firm
Straight rebuy
A recurring requirement; buyers
have substantial experience with
the purchase
– Information needs are low; little need to
evaluate alternative solutions
–
Routinized response behavior; selection of
–
vendor from a list of acceptable vendors
–
Choice criteria are well developed
–
Strong predisposition to certain suppliers
Modified rebuy
Buyer perceives benefits from a
reevaluation of alternatives
LIMITED PROBLEM SOLVING
THERE ARE TWO TYPES
SIMPLE
COMPLEX
Complex: involves a large set of choice
alternatives
IN VS OUT SUPPLIER
Forces Shaping Organizational
Buying Behavior
ENVIRONMENTAL
 ORGANIZATIONAL
 GROUP
 INDIVIDUAL

ORGANIZATIONAL
GROUP
INDIVIDUAL
INSIGHTS
 POWER
 INFLUENCE
 POLITICAL
 VALUE
 ROLE
 GROUP
and now
MR. ROGERS
THEORY OF
ADOPTION,
DIFFUSION and
INNOVATION
The foldable lens OPTHALMIC OPINION
LEADERS and other adopter groups.
Remember your bell curve. Let’s relive it!
Not Fred but Everett !!!!!!
BA 303
LPC1@umsl.edu