Chapter 3. Organizational Buying Behavior

1
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

2
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."

3
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

4
New task Firm has no experience in purchasing
the product requiresextensive 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

5
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

6
Modified rebuyBuyer 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

7
Forces Shaping Organizational Buying
Behavior

• ENVIRONMENTAL
• ORGANIZATIONAL
• GROUP
• INDIVIDUAL

8
ORGANIZATIONAL GROUP INDIVIDUAL

• INSIGHTS
• POWER
• INFLUENCE
• POLITICAL
• VALUE
• ROLE
• GROUP

9
and now MR. ROGERS THEORY OF ADOPTION, DIFFUSION
and INNOVATION

• The foldable lens OPTHALMIC OPINION LEADERS and
  other adopter groups. Remember your bell curve.
  Lets relive it!
• Not Fred but Everett !!!!!!

10
lpc
BA 303 LPC1_at_umsl.edu

• opportunityisnowhere