Organizational

buying behavior
B2B Marketing
Mag. Maria Peer
2
Organizational buying
behavior
Consumer vs. Organizational buying
behavior
Main types of buying situations in
B2B
Stages of decision in B2B
Roles in B2B procurement
Influences on organizational behavior
Buying centres in summary
Mag. Maria Peer
3
Consumer vs. Organizational
buying behavior
Decisions made by consumers are quite simple
Organizational buying processes are more
complicated, there are several phases and steps
Different buying behavior for different products and
target groups
Simple consumer goods like food and beverages are
bought very spontaneously influenced by advertising
and product presentation
For premium consumer goods (expensive clothes,
computers) buying behavior is getting more rational
comparison
Private investment goods price bargaining
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4
B2B products organizational
procurement starts
More than one person involved
Buying process follows certain rules
Price comparison, standardisation,
tenders = Ausschreibungen)
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B2B systems
involve more capabilities and greater
workloads
From the buyers and the suppliers
side decision has more extensive
consequences
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6
B2B facilities
Industrial plants
Manufacturing installations
Office buildings
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Main types of buying
situations in B2B
Straigtht rebuy routine decision, repetitive process
(energy, office supplies, raw materials, wood,
cigarettes), component suppliers for the automotive
industry little or no new information
Modified rebuy more complicated but less
sophisticated: cars, trucks, computers, consulting
modified rebuys are often treated too uncautious
New task calls for thorough research industrial
plant highest level of uncertainty. Strategic new tasks
are of extreme strategic and financial importance
(aircrafts, military equipment, infrastructure) re-
evaluation of alternatives and search for new
information and new alternatives


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Buying phases
Problem recognition
General need description
Product specification
Supplier search
Proposal solicitation
Supplier selection
Order routine specification
Performance review
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Stages of decision in B2B
procurement
Backhaus developed a widely usable model
to distinguish between 5 phases of
procurement
Preliminary application (initiation phase)
Tender proposal
Negotiation
Processing of order
Warranty and services
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10
Preliminary application
Recognition of a problem (need) and
a general solution
Released by top management =
operating department or external
consultants
Result request for an offer
addressed to a number of potential
suppliers
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11
Tender preparation phase
Determination of characteristics and
quantity of needed items
Search for and qualification of potential
sources
Supplier has to provide an offer
Tries to be incomparable with his
competitors
Customer tries to make the offer best
comparable
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Negotiation phase
= core selling process
Comprises acquisition and analysis of
proposals, evaluation of proposals
and selection of suppliers
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Processing phase/warranty/
service phase
Contains selection of an order routine
Realisation of the transaction along
with the fixation of after sales service
tasks
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Roles in B2B procurement
buying center concept
Group of people involved in the
buying process buying center
Webster/Wind model shows 5
different roles not institutionalised
This causes probleme in identifying
and targeting the right people within
the decision process
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Buying center
Role keepers have different tasks
not mandatory

Buyer
User
Initiator
Gatekeeper
Influencer
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Buyer
Formal authority to sign contracts
Member of purchasing department
Influences the vendor selection
Not in technical details
Main criteria: price + terms and
conditions of the contract
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User
Person working with the product
Interested in benefits and
unobstructed function of the product
to buy
Large knowhow and preconceived
opinion
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Influencer

A person with high technical
knowledge and practical experience

definition of minimum requirements
on technical or company standards

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Gatekeeper

Controls the flow of information within
the buying center
Assistant of decision maker
Influence by preparing the decision
and the relevant documents
(Scriptum p 33-34 + summary)
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Decider

Right to say yes or no
Mightiest person
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Initiator

Person who brings new ideas and
solutions into the company
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Specific marketing
considerations in the industrial
facilities business
Long decision taking process
High risk
Complex buying center
The specific competitive situation
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Product policy
Focuses on innovation
Has to care for high flexibility in
research and development
And manufacturing and assembling
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Price

Strict bid and tender rules
High transparency
Add value with service offering to
achieve a differentiating position
Another aspect: financing and
sourcing models
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Distribution policy
Focus on negotiation phase
Provide excellent people in the selling
center
High technical knowledge
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Communication

Problem solver!
Proving success with comparable
tasks
Reference projects!