BUSINESS BUYING BEHAVIOR

Sonam Mhajan
Mahendra Yadav
Milan Bir
Devendra Singh
 WHAT WILL WE LEARN IN THIS UNIT:-
Characteristics
What is businessof
market market
business

Ty
pe
s
of
Bu
sin
es
s
Co
ns
u
m
ers
Role of Various
Buying
Functional
Departments in
Center
Purchase Process

Bu
yi
ng
M
oti
ve
s
Of
Bu
si
ne
ss
Bu
ye
rs
 What will we learn in this unit:-
sg
Process
tions

Ty
e

Of
B
s
n
s

B
y
n

Business
Factors
Market
influencing
business buying
Segmentation

M
od
els
for
M
ark
et
Se
g
m
en
tat
ion
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in
s

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nv
lv

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n

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r
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r
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Characteristics
Characteristics of
of Business
Business Markets
Markets

Market
MarketStructure
Structureand
andDemand
Demand

Nature
Natureof
ofthe
theBuying
BuyingUnit
Unit

Types
Typesof
ofDecisions
Decisions&&the
the
Decision
DecisionProcess
Process
Market structure Fewer, Larger
and Demand Buyers

Derived Demand Geographically

from consumers Concentrated

Inelastic Fluctuating
Demand Demand
Nature of the Buying Unit

More Buyers

More Professional Purchasing efforts

 Types of
decision &
decision
process

Buyer and
seller are more
dependent on
each other

Build close More

long-term complex
relationships
decisions

Process is
more
formalized
 Types of
Business
Consumers
Participants in the Business Buying
Process: The Buying Center

Gatekeepers Users

Buying
Buying
Deciders Center
Center Influencers

Buyers
Mar and Ope

Role of Various
Functional Departments
in Purchase Process

Depart
Devel
Buying Motives Of Business Buyers

Efficiency

Sale ability Economy

Simplicity Good Quality

Buying Motives Of Business Buyers

Ease of
Operation

Cleanliness Space Saving

Safety Obsolescence
Major Types of Buying
Situations:-
The buyer routinely reorders
Straight Re-buy something without any
modifications.

The buyer wants to modify

Modified Re-buy product specifications,
prices, terms, or suppliers.

The buyer purchases a

New Task product or service for the
first time.
 Characteristics of the
Three Types of Buying
Decisions:-
Straight Modified New
Rebuy Rebuy Task
Newness of Problem or Need Low Medium High
Information Requirements Minimal Moderate Maximum
Information Search Minimal Limited Extensive
Consideration of New Alternatives None Limited Extensive
Multiple Buying Influence Very Small Moderate Large
Financial Risks Low Moderate High

Routine Limited Extended

response prob. prob solving
solving
 Performance
Performance Review
Review
Order
Order Routine
Routine Specification
Specification
Supplier
Supplier Selection
Selection
Proposal
Proposal Solicitation
Solicitation
Supplier
Supplier Search
Search
Product
Product Specification
Specification
General
General Need
Need Description
Description
Problem
Problem Recognition
Recognition
Buying Process:-
Stages in the Business
 Types Of Business Buying:-
Competitiv Non-Tender
e Tendering Purchasing

Reverse
Auction

Purchasing Supply Chain

Card Management
 Buyers
Buyers
Individual
Individual
Age,
Age,Education,
Education,Job
JobPosition,
Position,Personality
Personality&&
Risk
RiskAttitudes
Attitudes
Interpersonal
Interpersonal
Authority,
Authority,Status,
Status,Empathy
Empathy&&
Persuasiveness
Persuasiveness
Organizational
Organizational
Objectives,
Objectives,Policies,
Policies,Procedures,
Procedures,
Structure,
Structure,&&Systems
Systems
Environmental
Environmental
Economic,
Economic,Technological,
Technological,Political,
Political,Competitive
Competitive&&Cultural
Cultural
Business Buying:-
Major Influences on
 Business
Market Segment is a group of people
Market
●

or organizations sharing one or more

characteristics that cause them to
Segmentati have similar product needs.

on

Why it ●
Sustainable Competitive
Advantage.
●
‘What’ and ‘Why’ of
needs? segmentation.
 CRITERIA FOR BUSINESS MARKET
SEGMENTATION:-

Measurabilit
y

Sustainabilit
y
Models for Market Segmentation:-

Nested
Two-stage
Approach
market
tosegmentation
segmentation
Two-stage market segmentation:-

Macro-segmentation

Micro-segmentation
 Macro-segmentation:-

Organizati Geographi
on size c Location

Industry Purchasin
Classification g Situation
 Two-stage market segmentation:-

Benefit Type of
Segmentation institution
Customers’
business
Purchasing
potential Strategies
 Macro-segmentation:-
Buying decision Purchasin
criteria g strategy
Structure of
decision making
unit

Perceived Attitude
importance of towards the
the product supplier
 Nested Approach to segmentation:-

Demographics

Operating variables

Buyers’ personal
Purchasing Approaches Situational factors
characteristics
 What we learnt in this unit:-
Characteristics
What is business
of
market market
business

Ty
pe
s
of
Bu
sin
es
s
Co
ns
u
m
ers
Role of Various
Buying
Functional
Departments in
Center
Purchase Process

Bu
yi
ng
M
oti
ve
s
Of
Bu
sin
es
s
Bu
ye
rs
Buying
Business
Buying Process
Situations
What we learnt in this unit:-
Ty
pe
s
Of
Bu
si
ne
ss
Bu
yi
ng

Business
Factors
influencing
Market
business buying
Segmentation

M
od
els
for
M
ar
ke
t
Se
g
m
en
tat
io
n