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MAANZ Smartamarketing 1

Organisational (B2B) Buyer BehaviourDr Brian Monger

Copyright April 2013. This Power Point program and the associated documents remain the intellectual property and the copyright of the author and of The Marketing Association of Australia and New Zealand Inc. These notes may be used only for personal study Persons and/or corporations wishing to use these notes for any

other purpose should contact MAANZ for written permission.


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Marketing In Black and White 2


Dr. Brian Monger

• Brian Monger is the CEO of MAANZ International and a Professional marketer and consultant with over 40 years experience.



Organisational Buyer Behaviour

Many marketers who work in the organisational area will testify that dealing with organisational buyers is quite unlike dealing with the end‐user of the product.

• The organisational buyer is often seen as being more rational and dispassionate; more professional and business‐like than consumers.



• Business and organisational customers are any buyers who purchase :

• for resale

• or

• to produce goods or services

• Business and organisational customers purchase products for their own consumption ‐ like any individual consumer



• Organisations make purchases to satisfy needs

• Business buying motives are presumed to be rational

• Their buying goal is to achieve the optimal combination of value, price, quality and service


Organisational Buyers

• Organisational buyer behaviour differs from consumer buyer behaviour.

• The primary difference is that the business buyer is significantly influenced by the demands of the organisation.

• Organisational buyers are human and therefore will exhibit similar behaviours to consumers when purchasing.


Characteristics that differentiate business and consumer buyers include:

• Role Specialisation• Formulised Process• Increased Decision

Accountability• Complexity Of

Requirements

• Tasks

• New Purchase• Modified Rebuy• Straight Rebuy


Organisational Buying Centre Roles

• Initiators• Users and Maintainers• Gatekeepers• Influencers• Deciders• Buyers


Elements Distinguishing Business and Non‐Business Buying Contexts

• Generally, the organisational context is far more rational, formal and inflexible than the consumer – non‐business context.

• Unlike ordinary consumers, organisational buyers must consider offers and make purchases inside fairly rigid organisational rules and structures.

• The formal constraints of commercial interviews gives them a sharper focus than those involving non‐business prospects. The commercial form of the meeting is fairly clear‐cut. Many organisations issue strict guidelines concerning the form and content of sales presentations.



• Due largely to the sharper focus and organisational structures, time is more critical in organisational presentations than in supplier‐ consumer transactions.

• They tend to take a longer term and wider view than personal buyer/users

• Traders accept or reject, largely on the basis of their assessments of how their customers will respond to their resultant value offers.



• Merchants must estimate the resaleability and profitability of consumption goods in terms of their cost to them and their final users. Organisational buyers must also account for the profitability of inputs, their capacity to lower costs, generate sales, and so forth.

• Organisational purchases are made within (or in close relation to) definite, clearly comprehended, budgetary limits.


Basic Buying Decision Criteria

1. Performance Criteria

2. Economic Criteria

3. Integrative Criteria

4. Adaptive Criteria

5. Legalistic Criteria


Organisational Buying Motives

• Seven emotional factors which are highly important in preparing organisation to organisation marketing.

• 1. Habit, complacency, inertia.• 2. Fear of decision.• 3. Security • 4. Laziness.• 5. The gambling instinct • 6. Fear of being left behind.• 7. Status.



• Decision making may be likened to that of limited problem solving of the consumer and the "shopping" product category and similarly the organisational buyer may take a modest amount of time, rely on some existing information and experience with some further search undertaken. Specification may be redesigned and reference checking and performance review may be utilised.


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