Developed by Cool Pictures and MultiMedia Presentations

Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Developed by Cool Pictures and MultiMedia Presentations

Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

2. General
Description
of Need

3. Product
Specifications

4. Supplier
Search

Organizational
Buying Process

5. Acquisition
and Analysis
of Proposals

6. Supplier
Selection

7. Selection
of
Order Routine

8. Performance
Review

1. Problem
Recognition

Developed by Cool Pictures and MultiMedia Presentations

Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Three Buying Situations

(slide 1 of 4)

1. New task
2. Modified rebuy
3. Straight rebuy

Developed by Cool Pictures and MultiMedia Presentations

Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Three Buying Situations

1. 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 problem
solving stage.
Buyers lack well defined criteria.
Lack strong predispositions toward a
solution.

Developed by Cool Pictures and MultiMedia Presentations

Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Three Buying Situations

2. 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 with
the performance of current supplier.
Buyers operate in the limited problem
solving stage.
Buyers have well defined criteria.

Developed by Cool Pictures and MultiMedia Presentations

Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Three Buying Situations

3. 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.

Developed by Cool Pictures and MultiMedia Presentations

Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Buying Decision Approaches

Causal purchasesinvolve no information search or analysis.

Routine low prioritydecisions are more important and

involve a moderate amount of analysis.

Developed by Cool Pictures and MultiMedia Presentations

Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

 Enables individual employees to buy online while the

company retains control of the purchasing process.
The Buy-Side Requisitioning Process

Developed by Cool Pictures and MultiMedia Presentations

Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Forces Influencing Organizational Buying

Behavior
A projected change in
business conditions
can drastically alter
buying plan.

Organizational
Buying
Behavior

Developed by Cool Pictures and MultiMedia Presentations

Environmental
Forces

Economic Outlook:
Domestic & Global
Pace of Technological
Change
Global Trade Relations

Organizational
Forces

Goals, Objectives, and

Strategies
Organizational Position
of Purchasing

Group
Forces

Roles, relative
influence, and patterns
of interaction of buying
decision participants

Individual
Forces

Job function, past

experience, and buying
motives of individual
decision participants
Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

The Buygrid Framework for Organizational Buying Situations

With rising competitive pressures

managers are using rigorous cost
modeling approaches to identify
factors that drive the cost of
purchased goods and services.

Developed by Cool Pictures and MultiMedia Presentations

Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Questions for the Industrial Salesperson

1. Which member takes part in the buying

process?
2. What is each members relative influence in the
decision?
3. What criteria is important to members in the
evaluation process?

Developed by Cool Pictures and MultiMedia Presentations

Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Members of the buying center assume different roles

throughout the procurement process.

Clues for
Identifying
Powerful
Buying
Center
Members

Developed by Cool Pictures and MultiMedia Presentations

Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Selective Process & Cognition

Developed by Cool Pictures and MultiMedia Presentations

Selective exposure.
Selective attention.
Selective perception.
Selective retention.

Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Perceived Risk Components

1. Uncertainty about the outcomes
of a decision.
2. The magnitude of
consequences associated with
making the wrong selection.

Developed by Cool Pictures and MultiMedia Presentations

Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Major Elements of Organizational Buying Behavior

The behavior of
organizational buyers
is influenced by
environmental,
organizational, group,
and individual factors.

Developed by Cool Pictures and MultiMedia Presentations

Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.