Objectives

How Business & Consumer Markets Differ

Organizational Buying Situations
Participants in the Business Buying
Process
Major Influences on Organizational Buyers
Business Buyer Decision Making
Institutional & Government Buying

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 Business vs. Consumer
Markets
Fewer buyers
Larger buyers
Close supplier-customer relationship
Geographically concentrated
Derived demand
Inelastic demand
Fluctuating demand

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 Business vs. Consumer
Markets
Professional purchasing
Several buying influences
Multiple sales calls
Direct purchasing
Reciprocity
Leasing

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 Custom furniture
Installed components
Buildings
New
New Task
Task Buying
Buying Weapon systems

New vehicles
Involved Decision Making

Elec. Equip
Consultants
Modified Computer equip.
Modified Rebuy
Rebuy

Utilities
Office Supplies
Bulk chemicals Straight
Straight Rebuy
Rebuy
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 Participants in the Business
Buying Process

Users

Initiators Influencers

Gatekeepers

Buyers Deciders

Approvers

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 Major Influences on
Industrial Buying Behavior
Environmental
Organizational
Level of
demand Interpersonal
Economic Objectives
outlook Interests Individual
Policies Age
Interest rate Authority Income Business
Procedures Education Buyer
Rate of techno- Status Job position
logical change Personality
Organizational
Political and structures Empathy Risk attitudes
regulatory Culture
developments Systems Persuasive-
ness
Competitive
developments
Social responsi-
bility concerns
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 Organizational Factors

Decentralized
Purchasing- Cross-
Centralized Purchasing
Department Functional
Purchasing of Small
Upgrading Roles
Ticket Items

Purchasing-
Internet Long-Term Performance Lean
Purchasing Contracts Evaluation & Production
Pro. Buyers

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 Need Problem
Problem Recognition
Recognition
Recognition General
General Need
Need Description
Description

Info Product
Product Specification
Specification
Search/ Supplier
Supplier Search
Search
Eval Proposal
Proposal Solicitation
Solicitation

Purchase Supplier
Supplier Selection
Selection

Order
Order Routine
Routine Specification
Specification
Post Performance
Performance Review
Review
Purchase
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 Institutional
Institutional Markets
Markets

Low
Low Budgets
Budgets Captive
Captive Patrons
Patrons

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 Government
Government Markets
Markets

Domestic
Domestic Suppliers
Suppliers Public
Public Review
Review

Cost
Cost Minimization
Minimization Open
Open Bids
Bids

Paperwork
Paperwork

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 Review

How Business & Consumer Markets Differ

Organizational Buying Situations
Participants in the Business Buying
Process
Major Influences on Organizational Buyers
Business Buyer Decision Making
Institutional & Government Buying

2000 Prentice Hall