consumer and organizational buyer behavior
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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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