Interpersonal dynamics of industrial buying behaviour

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En vir on me ntal Ec on omi c, Tec hn olo gic al, Pol itic al, Co mp etiti ve & Cul tur al Org ani zati ona l Obj ecti ves , Poli cie s, Pro ced ure s, Str uct ure, & Sys tem Indi vid ual Ag e, Ed uca tio n, Job Po siti on, Per son alit y& Bu yer s Ris
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Major Influences on Business Buyers

Inte rpe rso nal Aut hor ity, Sta tus, Em pat hy & Per sua siv ene ss

Purchasings influence on buyer behavior

Material requirement planning (MRP) : is a production planning and inventorycontrol system used to managemanufacturingprocesses. Most MRP systems aresoftware-based, while it is possible to conduct MRP by hand as well.

An MRP system is intended to simultaneously meet three objectives:

Ensurematerialsare available for 4/14/12 productionandproductsare available

Just-in-Time(JIT)

is a production strategy that strives to improve a business' return on investmentby reducing inprocessinventoryand associated carrying costs. JIT focuses on continuous improvement and can improve a manufacturing organization'sreturn on investment, quality, and efficiency. To achieve continuous improvement key areas of focus could be flow,4/14/12 employee

Centralized purchasing

When the purchasing function is entrusted to a single person, it is said to be centralized purchasing. It means all purchases are made by the Purchasing Officer. Generally large and medium size organisations accept centralized purchasing. Computers are used in online purchasing 4/14/12 orders, & online purchasing order

Buyer technology

Buying center involvement & interaction pattern

Joint decision making Interaction pattern

Vertical Lateral

involvement involvement

Extensivity Connectedness

Purchase situation influence Organizational influence

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Psychological factor influencing individual decision making

differences in role orientation

Difference in information exposure Perceived risk in vendor selection process

Reduce Play

Strategies uncertainty by gathering more information the odds: using sophisticated analysis methods the risk
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Spread

Conflicts & resolution in joint decision making

Conflict -resolution strategies

Competing assertive, uncooperative, win loose power struggle Accommodating- peaceful co-existence, unassertive, cooperative behavior Collaborating : mutual satisfaction, assertive, cooperative behavior Avoiding : postponing an issue unassertive, uncooperative behavior Compromising : mutually acceptable
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Party,s attempt to satisfy own concern

competi collaborating ng

compromi sing

Avoidi Accommo ng dating Party,s attempt to satisfy 4/14/12 others concern

Powers in conflict resolution

Reward Vs coercive power Legitimate power Expert power

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