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DEAN KAMEN (the awardwinning inventor) revealed

his innovation:

A two-wheeled battery-

powered device designed for

a single standing rider.

It is also called The Human

Transporter

DEAN KAMEN

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What type of

business productis the Segway?

Explain

Question 1:

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A product used tomanufacture other

goods or services, to

facilitate an

organizations

operations, or to resellto other customers.

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MAJOR

EQUIPMENT

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Why it is MAJOR

EQUIPMENT?

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LARGE ~ As big as an average adult body.

~ 80-pound industrial version and

70-pound consumer model.

EXPENSIVE ~ 80-pound industrial version

priced at $5,000~ 70-pound consumer model

costs about $4,000

DEPRECIATE OVER TIME~ Wear and tear

~ Technology change over time

~ Obsolete

~ Competition from others

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Question 2:

Describe the buying process

that you would expect the U.S.Postal Service to use. Include

references to the buying

behavior roles of various

buying-center participants. Do

the same thing for Amazon and

briefly summarize the

differences you would expect to

find.

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Industrial buyers

Those who purchase itemson behalf of their business

or organisation.

Consumer buyers

Those who purchase itemsfor their personal

consumption.

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The Buying

Process

Leads to aDecision to

Buy!!!

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1. Identify or need

recognition

2. Search

3. Evaluate

4. Decide5. Purchase

6. Reevaluate

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The buying process starts withneed recognition. At this stage, the

buyer (U.S Postal Service)recognizes a problem or need.

No matter how long the processtakes, the buying decision alwaysbegins when folks become aware of

a need.

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An aroused customer then needs

to decide how much information (if

any) is required.

A customer can obtain information from severalsources: Personal sources: family, friends, neighbours. Commercial sources: advertising, salespeople,

retailers, dealers, packaging, point-of-sale displays Public sources: newspapers, radio, television,consumer organizations, specialist magazines

Experiential sources: handling, examining, using the

product

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While gathering information, they refine andevaluate all the buying criteria that will affect the

decision to purchase and narrow the field ofchoice to the best few alternatives.

In the evaluation stage, the customer mustchoose between the alternative brands, productsand services.

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They need to decidewhether to make apurchase or not.

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Once theyreach a decision

and choose,

they take actionby making a

purchase.

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R

E

E

V

AL

U

A

T

E

It is common for customers to

experience concerns after making apurchase decision.

The customer, having bought a product,

may feel that an alternative would havebeen preferable.

In these circumstances, the customer will

not repurchase immediately, but it islikely to make an evaluation about the

products.

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BUSINESS BUYING PROCESS

Identify The

ProblemGeneral Need

Description

ProductSpecification

Supplier

SearchSupplierProposal

Solicitation

SupplierSelection

Order-Routine

Specification

PerformanceReview

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BUSINESS BUYING

BEHAVIORIt is the

purchasingbehavior ofbusinesses

who buyfrom other

businesses.

Aspects Of Business BuyingBehavior

Buying centers

Evaluative criteria

Buying situationsBusiness ethics

Customer service

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BUYING CENTERSAll those persons in an organization who

become involved in the purchase decision.

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Initiator

~ First person whosuggesting to make apurchase.

~ E.g. Chief Executive

Officer

Influencer / Evaluator

~ Second in-line in makingthe decision.

~ E.g. Secretary, Advisor /Counselor)

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Gatekeepers

~ Anyone who controlsaccess to other BuyingCenter members.

~ E.g. AdministrativeAssistant.

Decider

~ Person who makes the

final purchasingdecision, formal/informal.

~ E.g. CEO, Purchasing

Manager

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Purchaser

~ Under department of finance,who negotiates the purchaseand responsible for dealingwith suppliers and placingorders.

~ E.g. Purchasing Agent.

Users

~ Employees who willactually use the product,as sometime employeesare allowed to have theirsay.

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VS

The U.S. Postal Service use Segway (Human Transporter) for their

own use which is for their employees to send mails on mail

routes in selected cities. So, they only have to buy just enough for

their employees to use.

While for Amazon, they make a bulk-buying purchase because the

Amazon buys Segway for their employees to navigate around the

warehouse fulfilling customer orders and also to resell to the

consumers.

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U.S

POSTAL

SERVICE

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AMAZON

SELLING

SEGWAY

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HND BM 11/02/GROUP 1