Developed by Cool Pictures and MultiMedia Presentations Developed by Cool Pictures and MultiMedia Presentations

Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

1. Problem Recognition

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

Developed by Cool Pictures and MultiMedia Presentations

Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Three Buying Situations

(slide 1 of 4)

1. New task 2. Modified rebuy 3. Straight rebuy

Developed by Cool Pictures and MultiMedia Presentations

Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Three Buying Situations

1. New Task (slide 2 of 4) New taskthe 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.

Developed by Cool Pictures and MultiMedia Presentations

Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Three Buying Situations

2. Modified Rebuy (slide 3 of 4) Modified rebuydecision 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.

Developed by Cool Pictures and MultiMedia Presentations

Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Three Buying Situations

3. Straight rebuy (slide 4 of 4) Straight rebuythe 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.

Developed by Cool Pictures and MultiMedia Presentations

Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Buying Decision Approaches

Causal purchasesinvolve no information search or analysis.

Routine low prioritydecisions are more important and involve a moderate amount of analysis.

Developed by Cool Pictures and MultiMedia Presentations

Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

 Enables individual employees to buy online while the company retains control of the purchasing process. The Buy-Side Requisitioning Process

Developed by Cool Pictures and MultiMedia Presentations

Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Forces Influencing Organizational Buying Behavior

A projected change in business conditions can drastically alter buying plan.

Environmental Forces

Economic Outlook: Domestic & Global Pace of Technological Change Global Trade Relations

Organizational Buying Behavior

Organizational Forces

Goals, Objectives, and Strategies Organizational Position of Purchasing Roles, relative influence, and patterns of interaction of buying decision participants Job function, past experience, and buying motives of individual decision participants
Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Group Forces

Individual Forces
Developed by Cool Pictures and MultiMedia Presentations

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.

Developed by Cool Pictures and MultiMedia Presentations

Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

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?

Developed by Cool Pictures and MultiMedia Presentations

Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Members of the buying center assume different roles throughout the procurement process.

Clues for Identifying Powerful Buying Center Members

Developed by Cool Pictures and MultiMedia Presentations

Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Selective Process & Cognition

Selective exposure. Selective attention. Selective perception. Selective retention.

Developed by Cool Pictures and MultiMedia Presentations

Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Perceived Risk Components

1. Uncertainty about the outcomes of a decision. 2. The magnitude of consequences associated with making the wrong selection.

Developed by Cool Pictures and MultiMedia Presentations

Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Major Elements of Organizational Buying Behavior

The behavior of organizational buyers is influenced by environmental, organizational, group, and individual factors.

Developed by Cool Pictures and MultiMedia Presentations

Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.