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Buying and
Buying Behavior
Chapter 3
Chapter Questions
• What are the purchasing objectives of business buyers?
• Personal objectives
– Higher status
– Job security
– Salary increments
– Promotions
– Social considerations
3
Buying Process of
Organisational Buyers
• Eight phases (Buyphases) of buying process:
1. Problem / Need recognition
2. Decide characteristics and quantity of needed product
3. Develop specifications / description of needed product
4. Search for potential suppliers
5. Obtain & analyse supplier proposals
6. Evaluate and select suppliers
7. Select an order routine
8. Performance feedback & post – purchase evaluation
4
Supplier/Vendor Analysis using
Multi attribute model
Attributes Weight Supplier Total
(or Criteria) (or Importance) Performance Rating Score
Product Quality 3 8 24
Service Quality 3 7 21
Price 2 6 12
Reputation 1 8 08
Flexibility 1 6 06
Total 10 71
5
Buying Process of
Organisational Buyers
• Types of Buying Situations (Buyclasses)
1. New Task / New purchase
– More information, risk, decision time, people involved
7
Buying Centre Members And
Key Influentials
Roles in
Organisationa Buyers
l Buying
Influentials
Gatekeepers Deciders
9
Models of Organisational
Buying Behaviour
• Most important factors influencing organisational
buyers:
– Organisational / Task – oriented
– Personal / non-task oriented
– Enviromental
– Buying Centre
Individual variables
12
The Choffray and Lilien Model
Negotiation
Organisational preferences
Group problem solving
Organisational choice
13
Contemporary Purchasing
Activities
• Just-in-time (JIT) Delivery
• Out sourcing
• World sourcing
• Single sourcing
• Value analysis / Value engineering
• Supplier evaluation system/Multi attribute model