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Developed by Cool Pictures and MultiMedia Presentations
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
2. General
Description
of Need
3. Product
Specifications
4. Supplier
Search
Organizational
Buying Process
5. Acquisition
and Analysis
of Proposals
6. Supplier
Selection
7. Selection
of
Order Routine
8. Performance
Review
1. Problem
Recognition
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Three Buying Situations
(slide 1 of 4)
1. New task
2. Modified rebuy
3. Straight rebuy
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Three Buying Situations
1. New Task (slide 2 of 4)
•
New task—the problem or need is totally
different from previous experiences.
– Significant amount of information is required.
– Buyers operate in the extensive problem
solving stage.
• Buyers lack well defined criteria.
• Lack strong predispositions toward a
solution.
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Three Buying Situations
2. Modified Rebuy (slide 3 of 4)
•
Modified rebuy—decision makers feel there
are benefits to be derived by reevaluating
alternatives.
– Most likely to occur when displeased with
the performance of current supplier.
– Buyers operate in the limited problem
solving stage.
• Buyers have well defined criteria.
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Three Buying Situations
3. Straight rebuy (slide 4 of 4)
•
Straight rebuy—the problem or need is a
recurring or continuing situation.
– Buyers have experience in the area in
question.
– Require little or no new information.
– Buyers operate in the routine problem
solving stage.
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Buying Decision Approaches
Causal purchases…involve no information search or analysis.
Routine low priority…decisions are more important and
involve a moderate amount of analysis.
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• Enables individual employees to buy online while the
company retains control of the purchasing process.
The Buy-Side Requisitioning Process
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Forces Influencing Organizational Buying
Behavior
A projected change in
business conditions
can drastically alter
buying plan.
Organizational
Buying
Behavior
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Environmental
Forces
•Economic Outlook:
Domestic & Global
•Pace of Technological
Change
•Global Trade Relations
Organizational
Forces
•Goals, Objectives, and
Strategies
•Organizational Position
of Purchasing
Group
Forces
•Roles, relative
influence, and patterns
of interaction of buying
decision participants
Individual
Forces
•Job function, past
experience, and buying
motives of individual
decision participants
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The Buygrid Framework for Organizational Buying Situations
With rising competitive pressures
managers are using rigorous cost
modeling approaches to identify
factors that drive the cost of
purchased goods and services.
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Questions for the Industrial Salesperson
1. Which member takes part in the buying
process?
2. What is each members relative influence in the
decision?
3. What criteria is important to members in the
evaluation process?
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Members of the buying center assume different roles
throughout the procurement process.
Clues for
Identifying
Powerful
Buying
Center
Members
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Selective Process & Cognition
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Selective exposure.
Selective attention.
Selective perception.
Selective retention.
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Perceived Risk Components
1. Uncertainty about the outcomes
of a decision.
2. The magnitude of
consequences associated with
making the wrong selection.
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Major Elements of Organizational Buying Behavior
The behavior of
organizational buyers
is influenced by
environmental,
organizational, group,
and individual factors.
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