Factors in B2B Buying Behavior

1
Factors in B2B Buying Behavior

• Process
• Stages see diagram below
• Players roles in Buying Center
• gatekeepers, users, influencers, deciders,
  purchasers

2
More Factors in B2B Buying Behavior

• Needs
• Organizational needs
• Individual needs
• role needs
• personal needs
• Nuances
• Variations in behavior based on industry norms,
  company culture, personal preferences and
  idiosyncrasies

3
Process Model
Organizational Needs Clear, concise,
tractable Appropriate, affordable, adaptable ch
oice, speed, risk handled
Individuals Needs info, time, design
assistance info, convenience, assurance
Define Problem
Define Solution
Acquire Solution Provider
4
Process Model
Organizational Needs speed, integration,
easy ease, speed, comprehensive user friendly,
effective, maintain-able
Individuals Needs execution assistance
knowledge, learning envrnmt easy to use, easy
to fix
Develop solution
Install, test, train
Operate solution
5
Process Model
Organizational Needs effective,
efficient information
Individuals Needs recognition communication
End Result -- reach objectives
Evaluate Outcomes
6
Some Factors Influencing Process

• Newness / Routine-ness Familiarity
• Volatility of environment
• Importance of end result
• Complexity
• Cost Budget
• Risk
• Politics

7
Customer decision process
ProblemRecognition
InformationSearch
AlternativeEvaluation
Choice andPurchase
Post-purchaseExperience
8
Problem Recognition

• Problem or solution stimuli (trigger)
• Internal or external stimuli
• Need state or Want state recognized
• Does marketing create needs and wants?

9
Information Search

• What level of information does the customer start
  with? How much does s/he realize is unknown?
• Awareness set (A) evoked set (E) consideration
  set (C).

A
E
C
10
More on Info Search

• Sources of information
• Marketer sources
• Nonmarketer sources
• Search strategies
• Routine problem solving
• Limited problem solving
• Extended problem solving

11
Still More on Info Search

• Search strategies systematic vs. heuristic
• Heuristics short-cuts, rules-of-thumb
• For instance purchase a known brand
• Amount of search
• Involvement importance
• Perceived risk
• Familiarity and expertise
• Time pressure
• Functional vs. expressive product nature
• Information overload

12
Alternative Evaluation

• Compensatory vs. non-compensatory models
• Compensatory used in extended problem solving
• Non-compensatory used in routine or limited
  problem solving, or as a first stage in a two
  stage process

13
Choice and Purchase

• Choice identification gt Purchase intentgt
  Purchase implementation
• Why would a consumer delay or not purchase the
  alternative that is chosen?

14
Post Purchase Experience

• Decision confirmation and cognitive dissonance
• Evaluation of experience
• Satisfaction or dissatisfaction -- expectations
• Future response

15
Technology Adoption Life Cycle
New Users
conservatives
pragmatists
laggards
technophiles
visionaries
Time
16
Segments in Adoption of New Technologies
OF NEW ADOPTERS
PRAGMATISTS OF DIFFERENT TYPES SOME
CONSERVATIVES?
CHASM
TECHNOPHILES
FIRST PRAGMATISTS
VISIONARIES
TIME