BUS 539 B2B Marketing

Week 2 Organizational Buying

Class Notes, Dr. Koray ANDIR

koraycandir@yahoo.com

Types of Organizational Customers

Commercial
Enterprises

Government
Units

Industrial
Distributors

State Institutions

Value-Added
Resellers

Municipalities

Original
Equipment
Manufacturers

Nonprofit and
Not-for-Profit
Organizations
Hospitals,
colleges,
nursing homes,
etc.

The Consumer Buying Decision Process (B2C)

Need Recognition
Information Search

This is more of a
simultaneous than a
sequential process.

Evaluation of Alternatives
Purchase Decision
Postpurchase Behavior

Steps in the 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
4

Organizational Buying
Involves many inputs from professional specialists
Diverse set of needs exist within the organization
Communication among stakeholders is key to sound

purchasing decisions

Major Differences, Organization Buying vs.

Consumer Buying
Involves more buyers more decision makers or

contributors
Participants are driven by the specific needs of their
professional responsibilities.
Decisions simultaneously spread throughout the
buying organization.

The Buying Situation

A buy class framework identifies the degree of effort

required of the firms personnel to collect

information and make a purchase decision
New

task buying
Modified rebuy
Straight rebuy

More effort

Less effort

Buying Situations
New
Task

A buying situation that has not been previously

faced by the organization.
Significantly steep learning curve, organization
seeks many sources of information.

A buying situation that is somewhat similar to past

problems/solutions
Modified
Examines alternatives within a limited scope,
Rebuy
involves fewer people than a new task situation and
more than a straight rebuy.
A routine buying situation with established
Straight solutions.
Rebuy Abbreviated steps in the process, fewer people in
the buying center, less time to completion.

Straight Rebuy

DHL hopes its business customers will use the

company for all straight rebuy purchases
6-9

Modified Rebuy

The purchase of
office equipment is
a modified rebuy
for most B2B
customers

10

New-Task Buy

When GE develops
new medical
equipment,
hospitals face a
new-task buy

11

The Professional Buyer

Titles: purchasing agents, procurement officers,

director of materials management

Focus on economic factors beyond the initial price
of a product, including transportation and delivery
charges, accessory products or supplies,
maintenance, disposal costs, etc.
Large firms practice centralized purchasing - one
department does all buying

14

The Buying Center

Group of people in the organization who participate in

the decision-making process

May include several different functions in the
organization

6-15

The Buying Center

Initiator
Decider

Purchaser (Buyer)
Gatekeeper
Influencer

Users

16