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  • Organizational Buying and Buyer Behavior - 3

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    Hassan
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    This document discusses organizational buying and buyer behavior in business-to-business contexts. It describes that organizational buying involves multiple stakeholders within a buying center who must meet the needs of the organization, their individual roles, and personal needs. The buying decision process is more complex than for consumers and typically involves problem recognition, specification, supplier search, selection, transaction, performance evaluation, and repeat purchases. Understanding these dynamics is key for effective B2B marketing.

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    This document discusses organizational buying and buyer behavior in business-to-business contexts. It describes that organizational buying involves multiple stakeholders within a buying center who must meet the needs of the organization, their individual roles, and personal needs. The buying decision process is more complex than for consumers and typically involves problem recognition, specification, supplier search, selection, transaction, performance evaluation, and repeat purchases. Understanding these dynamics is key for effective B2B marketing.

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    27 views18 pages

    Organizational Buying and Buyer Behavior - 3

    Uploaded by

    Hassan
    This document discusses organizational buying and buyer behavior in business-to-business contexts. It describes that organizational buying involves multiple stakeholders within a buying center who must meet the needs of the organization, their individual roles, and personal needs. The buying decision process is more complex than for consumers and typically involves problem recognition, specification, supplier search, selection, transaction, performance evaluation, and repeat purchases. Understanding these dynamics is key for effective B2B marketing.

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    of 18

    Organizational Buying and Buyer Behavior

    By: Dr. Waseem Hassan


    Understanding Customers is Vital for B2B
    marketing process
    • Understanding buyer behaviour is the key for
    a successful B2B marketing process
    • Major questions:
    – Who are they?
    – What do they need?
    – What do they buy?
    – How do they buy?
    – How much do they buy?
    Organizational Buying Vs. Consumer Buying

     Involves more Buyers

     Stakeholders in Buying Center are driven by


    professional responsibilities

     Different decisions occur simultaneously


    within the Buying Center
    Buying Center
    • Decision making unit of buying situation
    • Several people involved from several
    departments
    The Buying Center
    External Factors

    • Customer needs and buying behavior


    • Government agencies
    • Independent standards-setting organizations
    • Various Publics
    Internal Factors

    • Technology Accounting
    • Management Marketing
    • Legal Production/Mfg.
    • Finance Service
    The Buying Center:
    Members must meet 3 needs in the decision
    process:
     Organization Needs
    o Benefits of the product or service
     Individual Needs
    o Based on professional activities and functions
    of the job
     Individual’s Personal Needs
    o Career, quality of life, recognition
    Consumer Decision Process
    • Need Recognition
    • Information Search
    • Evaluation of Alternatives
    • Purchase Decision
    • Post Purchase Behavior
    B2B Buying Decision Process
    1. Problem recognition
    2. General need description
    3. Product Specification
    4. Supplier/Source search
    5. Proposal solicitation
    6. Selection
    7. Make the transaction routine
    8. Evaluate performance
    Buying Decision Process:
    Definition Stage
     Describing a solution
     Assess problem
     Necessary to resolve
     Complexity of solution
     Resources required
     Involvement of suppliers
    Buying Decision Process:
    Supplier Search
     Trade directories
     Solicit proposals
     Conduct a value analysis - an evaluation of each component
    of a potential purchase; examine quality, design, materials,
    item reduction/deletion to save costs, etc.
     Conduct seller analysis - a formal and systematic evaluation
    of current and potential suppliers; focuses on price, quality,
    delivery service, availability and overall reliability
    Buying Decision Process:
    Supplier Selection
     Multiple sourcing
     Sole sourcing
    Buying Decision Process:
    Transaction aggrement & routines
     After selecting a supplier, the buyer will negotiate the final
    order by listing
     the technical specifications,
     agreed upon price,
     quantities,
     expected time of delivery,
     return policies,
     warranties
     and any other terms of negotiation.
    Buying Decision Process:
    Delivery Stage
     Meet the customer’s technical requirements
     Meet the customer’s delivery timing requirements
     Meet the customer special logistics and delivery
    requirements
     Meet the agreement overall
    Buying Decision Process:
    Supplier Evaluation Stage
     Compare products with specifications
     Results become feedback for other stages in future business
    purchasing decisions
     Evaluate overall buying process and supplier as a whole
     Evaluate the company’s buying process for this specific
    buying situation and make necessary modifications
    Typical New Task Situation
    • A need not yet faced by Organization
    • New offering with new technology
    • Requires many sources of information and
    assistance
    • Utilizes complete buying process to
    investigate alternatives
    Typical Re-Buy Situation
    • Modified Re-Buy
    – Situation from New-Task Situation
    – Limit exposure from competitive forces
    • Straight Re-Buy
    – Buying situation that is routine
    – Established solutions
    Value Image
     Is the total of all impressions that a
    customer has of the firm (whether relevant
    to the buying situation)
     Is similar to product positioning that occurs
    with consumer goods
     Needs to be maximized in the “mind” of the
    buyer
    E-Procurement
    • Purchasing through electronic connections
    • Between buyers and sellers – usually online.

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