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OrganizationalBuying Process

1. Problem

Recognition

2. General

Description

of Need

3. Product

Specifications

4. SupplierSearch

5. Acquisition

and Analysis

of Proposals

6. Supplier

Selection

7. Selection

of

Order Routine

8. Performance

Review


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Three Buying Situations(slide 1 of 4)

1. New task

2. Modified rebuy

3. Straight rebuy


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Three Buying Situations1. New Task (slide 2 of 4)

New taskthe problem or need is totally

different from previous experiences.

Significant amount of information is required.

Buyers operate in the extensive problemsolving stage.

Buyers lack well defined criteria.

Lack strong predispositions toward asolution.


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Three Buying Situations2. Modified Rebuy (slide 3 of 4)

Modified rebuydecision makers feel there

are benefits to be derived by reevaluating

alternatives.

Most likely to occur when displeased withthe performance of current supplier.

Buyers operate in the limited problem

solving stage.

Buyers have well defined criteria.


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Three Buying Situations3. Straight rebuy (slide 4 of 4)

Straight rebuythe problem or need is a

recurring or continuing situation.

Buyers have experience in the area in

question. Require little or no new information.

Buyers operate in the routine problem

solving stage.


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Buying Decision Approaches

Causal purchasesinvolve no information search or analysis.

Routine low prioritydecisions are more important and

involve a moderate amount of analysis.


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Enables individual employees to buy online while the

company retains control of the purchasing process.

The Buy-Side Requisitioning Process


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Forces Influencing Organizational Buying

Behavior

Environmental

Forces

Organizational

Forces

Group

Forces

Individual

Forces

Organizational

Buying

Behavior

Economic Outlook:

Domestic & Global

Pace of TechnologicalChangeGlobal Trade Relations

Goals, Objectives, and

Strategies

Organizational Positionof Purchasing

Roles, relative

influence, and patterns

of interaction of buying

decision participants

Job function, past

experience, and buying

motives of individual

decision participants

A projected change in

business conditionscan drastically alter

buying plan.


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With rising competitive pressures

managers are using rigorous cost

modeling approaches to identifyfactors that drive the cost of

purchased goods and services.

The Buygrid Framework for Organizational Buying Situations


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Questions for the Industrial Salesperson

Which member takes part in the buying

process?

What is each members relative influence in the

decision? What criteria is important to members in the

evaluation process?


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Members of the buying center assume different roles

throughout the procurement process.

Clues for

Identifying

PowerfulBuying

Center

Members


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Selective Process & Cognition

Selective exposure.

Selective attention.

Selective perception.

Selective retention.


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Perceived Risk Components

1.Uncertainty about the outcomes

of a decision.

2.The magnitude of

consequences associated with

making the wrong selection.


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The behavior oforganizational buyers

is influenced by

environmental,

organizational, group,

and individual factors.

Major Elements of Organizational Buying Behavior

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