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Organizational Buying Behavior. Chapter 3. Supplier-Buyer Relationship. Why work closely? How?. Organizational Buying Process. Problem Recognition General Description of Need Product Specifications Supplier Search Acquisition and Analysis of Proposals Supplier Selection

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Presentation Transcript
supplier buyer relationship
Supplier-Buyer Relationship
  • Why work closely?
  • How?
organizational buying process
Organizational Buying Process
  • Problem Recognition
  • General Description of Need
  • Product Specifications
  • Supplier Search
  • Acquisition and Analysis of Proposals
  • Supplier Selection
  • Selection of Order Routine
purchase types
Purchase Types
  • New Task
    • Problem or need is different from anything previously experienced
    • Lack well-defined criteria and supplier loyalty
    • Buying decision approaches
      • Judgmental new task situations
      • Strategic new task decisions
    • Business Marketer Strategy
purchase types5
Purchase Types
  • Straight Rebuy
    • Continuing or recurring requirements
    • Routine problem solving
      • Operational resources
    • Buying decision approaches
      • Causal purchases
      • Routine low priority
    • Business Marketer Strategy
      • In-supplier
      • Out-supplier
purchase types6
Purchase Types
  • Modified Rebuy
    • Believe can derive significant benefits by reevaluating alternatives
    • Limited problem solving
    • Buying decision approaches
      • Simple modified rebuy
      • Complex modified rebuy
    • Business Marketer Strategy
      • In-supplier
      • Out-supplier
forces shaping organizational buying behavior
Forces Shaping Organizational Buying Behavior
  • Environmental Forces
  • Organizational Forces
  • Group Forces
  • Individual Forces
forces on organizational buying
Forces on Organizational Buying
  • Environmental Forces
    • Economic influences
      • ↓economy=
      • Selective shifts
    • Technological influences
      • Foresee changes
forces on organizational buying9
Forces on Organizational Buying
  • Organizational Forces
    • Role of purchasing agents
    • Should it be centralized?
      • Benefits
        • Better integrate purchasing
        • Cut costs
        • Favorable terms
        • Work better with engineers
        • Specialization
      • When to centralize or decentralize?
forces on organizational buying10
Forces on Organizational Buying
  • Group Forces
  • Buying Center
    • Different people play different roles
    • New task
    • Straight rebuy/modified rebuy
  • Predicting Composition
    • Why?
forces on organizational buying11
Forces on Organizational Buying
  • Group Forces (cont’d)
    • Buying center influences
      • Users
      • Gatekeepers
      • Influencers
      • Deciders
      • Buyers
    • Identifying patterns of behavior
      • Isolate personal stakeholders
      • Follow flow of information
      • Identify experts
      • Trace connections to the top
      • Understand purchasing’s role
individual forces
Individual Forces
  • Differing Evaluative Criteria
  • Responsive Marketing Strategy
  • Information-processing
  • Selective processing
    • Selective exposure
    • Selective attention
    • Selective perception
    • Selective retention
  • Risk-reduction strategies
    • Perceived risk
      • Two components