consumer and organizational buyer behavior

7/30/2019 Consumer and Organizational Buyer Behavior

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Difference between Consumer and

Organizational Buying

ewer organ za ona uyers

Close, long-term relationship between

Organizational buyers are more rational

requirements

Reciprocal buying may be important in

organizational buying

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Organizational selling/ buying may be more

Organizational buying is more complexNegotiation is often more important in

organ zat ona uy ngConsumer Buyer Behavior

obtained by answering the following

questions o s mpor an n e uy ng ec s on

How do they buy?

Where do they buy?When do they buy?

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Blackwell, Miniard and Engel describe five

Initiator Influencer

DeciderBuyerUser

The consumer decision making process: Information gatheringEvaluation of alternativesSelection of an appropriate solutionPost- purchase evaluation

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Choice CriteriaChoice criteria can be economic, social, or

personal

Economic criteria include performance,reliability, price

oc a cr er a nc u e s a us an e nee or

social belonging

service relates to the individual psychologically

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The buying situation:Howard and Sheth identified three types of

buying situation

or need is new, the means of solving thatproblem is expensive and uncertainty is high,

problem solving

Limited problem solving occurs when theconsumer as some exper ence w eproduct in question and may be inclined tostay loyal to the brand previously purchased

Automatic response happens when companieswho have built up a large brand franchise

state of automatic response

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Personal influences: A second group of factors

process concerns the psychology of theindividuals

e evant concepts nc u ePersonality

PerceptionLearninLifestyle patterns have attracted much

attention from marketing research

Lifestyle refers to the patterns of living asexpressed in a persons activities, interestsan op n ons

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Social influences: Most social influences on

consumer decision making include

Social class

e erence groups

Culture and

am y

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Organizational Buyer Behavior:

Organizational buyer behavior has usefully

been broken down into three elements by

s er. ey are

Structure who participates in the decision

ma ng process an e r par cu ar ro es

Process the pattern of information getting,, -

which takes place as the purchasing

Content the choice criteria used at different

sta es of the rocess and b different

members of the decision- making unit

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Structure: An essential point to understand inorganizational buying is that the buyer or purchasing

officer is often not the only person who influences

,

the ultimate decision. Rather, the decision is in thehands of a decision makin unit DMU , or bu in

center as it is sometimes called

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Process: Need or problem recognition

Determination of characteristics, specification and

quantity of needed item

Acquisition and analysis of proposals

Selection of an order routine

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Content: This aspect of organizational buyer

members of DMU to evaluate supplier proposals

Price and life-cycle costs

Perceived risk

Personal liking / disliking: As with consumer

,work on buyers such as

, ,

selective retention12


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Factors affecting Organizational buyer behavior:

The buy class

The importance of purchase to the buying

The buy class:

Strai ht re-bu

Modified re-buy

New task

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Products can be classified according to four types

Components

Products and services for maintenance, repair,

equipment

Im ortance of urchase to the or anization:

Involves large sums of money, considerable

uncertainty about the outcome of alternative

offerings

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Development in Purchasing Practice:

purchasing function which have marketingimplications for supplier firms

Just in time purchasing (JIT)

stocks by organizing a supply system which

provides materials and components as they are

Centralized purchasingWhere several operating units within a company

have common requirements and there isopportunity to strengthen a position by bulkbu in centralized urchasin is an attractiveoption

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Purchasing is taking on a more proactive,

aggressive stance in acquiring the products.

This process whereby the buyer attempts topersuade the supplier to provide exactly whatthe organization wants is called reversemarketing

stronger and longer relationship

It could be a source of new product

broader customer base.

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A lease is a contract by which the owner of anasset grants the right to use the asset (e.g. a car )for a period of time to another party in exchangefor payment of rent

Financial lease or full payment lease

O eratin lease sometimes called rentalagreements

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consumer and organizational buyer behavior

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