ch6 business buyer behavior
TRANSCRIPT
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Business Markets andBusiness Buyer Behavior
Chapter 6
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DefinitionBusiness Buyer Behavior:
The buying behavior of organizations that buygoods and services for use in the production ofother products and services that are sold, rented,or supplied to others.
Also included are retailing and wholesaling firmsthat acquire goods for the purpose of reselling orrenting them to others at a profit.
Goal 1: Define the business market
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Sales in the business market far exceed salesin consumer markets.
Business markets differ from consumer
markets in many ways. Marketing structure and demand
Nature of the buying unit
Types of decisions and the decision process
Characteristics of
Business Markets
Goal 1: Define the business market
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Business Markets
Compared toconsumer markets:
Business markets have fewer but larger
customers
Business customers are more
geographicallyconcentrated
Demand is different Demand is derived Demand is price
inelastic Demand fluctuates
more
Characteristics
Goal 1: Define the business market
Marketing Structureand Demand
Nature of theBuying Unit
Types of Decisions andthe Decision Process
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Business Markets
Marketing Structureand DemandNature of theBuying UnitTypes of Decisions and
the Decision Process
Compared to consumerpurchases:
Involve more buyers inthe decision process
More professionalpurchasing effort
Characteristics
Goal 1: Define the business market
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Business Markets
Marketing Structureand DemandNature of theBuying UnitTypes of Decisions and
the Decision Process
Compared to consumerpurchases More complex buying
decisions The buying process is
more formalized
Buyers and sellers workmore closely together and
build long-termrelationships
Goal 1: Define the business market
Characteristics
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Major Types of Buying Situations
Straight rebuy Reordering without modification
Modified rebuy
Requires modification to prior purchase
New task First-time purchase
Business Buyer Behavior
Goal 1: Define the business market
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Business Buyer Behavior
Systems Selling Buying a packaged solution to a
problem from a single seller. Often a key marketing strategy for
businesses seeking to win and holdaccounts.
Goal 1: Define the business market
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Business Buyer Behavior
Buying Center The decision-making unit of a buying
organization Includes all individuals and units
that participate in the decisionmaking
Goal 1: Define the business market
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Major Influences on
Business Buyers
Environmental
Organizational
Interpersonal
Individual
Economic trends
Supply conditionsTechnological, politicaland competitivechangesCulture and customs
Key Factors
Goal 2: Identify the major factors that influence business buyer behavior
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Major Influences on
Business Buyers
Environmental
Organizational
Interpersonal
Individual
Objectives
PoliciesProceduresOrganizationalstructure
Systems
Key Factors
Goal 2: Identify the major factors that influence business buyer behavior
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Major Influences on
Business Buyers
Influence of
members in thebuying center Authority Status Empathy Persuasiveness
Key Factors
Goal 2: Identify the major factors that influence business buyer behavior
Environmental
Organizational
Interpersonal
Individual
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Major Influences on
Business Buyers
Personal characteristics ofmembers in the buying
center Age and income Education Job position Personality Risk attitudes Buying styles
Key Factors
Goal 2: Identify the major factors that influence business buyer behavior
Environmental
Organizational
Interpersonal
Individual
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Stages in the Business
Buying ProcessStage 1: Problem Recognition
Stage 2: General Need Description
Stage 3: Product Specification Value analysis helps to reduce costs
Stage 4: Supplier Search
Supplier development
Goal 3: List and define the steps in the business buying decision process
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Stage 5: Proposal Solicitation
Stage 6: Supplier Selection
Stage 7: Order-RoutineSpecification
Blanket contracts are often used for
maintenance, repair and operatingitems.
Stage 8: Performance Review
Stages in the Business
Buying Process
Goal 3: List and define the steps in the business buying decision process
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E-procurement is growing rapidly
Online auctions and online tradingexchanges (e-marketplaces) account formuch of the online purchasing activity
E-procurement offers many benefits: Access to new suppliers
Lower purchasing costs Quicker order processing and delivery
Business Buying
on the Internet
Goal 3: List and define the steps in the business buying decision process