Description
Environmental factors: They are difficult to identify and measure. Environmental influences can be physically, technologically, economically, politically and culturally. Influences exerted by different institutions, such as suppliers, competitors and customers. The environmental conditions are particularly relevant because where transnational cooperation is taking place.
Organisational Buyer Behavior
Overview
(I) Distinguishing factors
(II) Influences on Organisational Buyer Behavior (III) Organisational Buying Decisions (IV) Organisational Buyer Decision Process
Distinguishing Factors
(A)Market Structure and Demand (B)Buyer Characteristics (C)Decision Process and Buying Patterns
Distinguishing Factors
A. Market Structure and Demand
? ? ? ? ? ? Geographic Concentration Fewer, Larger Buyers Vertical / Horizontal Markets Derived Demand Inelastic Demand Fluctuating Demand
Distinguishing Factors
B. Buyer Characteristics
? ? ? Group Involvement Technical Knowledge Rational Motivations
Distinguishing Factors
C. Decision Process and Buying Patterns
? ? ? ? ? ? ? ? ? Formality Complexity Lengthy Negotiation Multiple Suppliers Large Orders Infrequent purchases Direct buying Reciprocity Importance of Service
Influences on Buyer Behavior
A. B. C. D. Environmental Factors Organisational Factors Interpersonal Factors Individual Factors
Influences on Buyer Behavior
A. Environmental Factors
? ? ? ? ? ? ? Physical Technological Economic Political Legal Ethical Cultural
Influences on Buyer Behavior
B. Organisational Factors
? ? ? ? Tasks Structure Technology People
Influences on Buyer Behavior
C. Interpersonal Factors
?
? ? ? ? ?
Buying Centre roles
Initiators Influencers Buyers Deciders Gatekeepers
Influences on Buyer Behavior
D. Individual Factors
? ? ? Motivation Perception Learning
Interpersonal Conflicts
Differences to due members’ objectives, personalities and decision making style Conflict over Evaluation Criteria of Vendors
Conflict over capabilities of vendors in matching up to standards
Conflict Resolution
Competing
• “Let’s do it my way”
Accommodating
• “I see you point of view”
Collaborating
• “May be we can work this one out”
Avoiding
• “Better let the situation cool down before we act”
Compromising
• Let’s split the difference”
Organisational Buying Decisions
• Types of Decision Situations:
? New Task ? Modified Rebuy ? Straight Rebuy
Organisational Buying Decision Process
Problem Recognition Need Description Product Specification
Vendor Search
Proposal Request (RFP, RFQ)
Vendor Selection
Purchase Routine Selection
Postpurchase evaluation
Attributes for Evaluation of Vendors
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Overall Reputation of supplier Financing terms Supplier’s flexibility in adjusting to company needs Technical services offered Confidence in the salespeople Convenience in placing the order Data on reliability of the product Price Technical specifications Ease of use and maintenance Preferences of principal user of the product Training offered by the supplier Training time required Reliability of deadlines After Sales Service
doc_290469191.pptx
Environmental factors: They are difficult to identify and measure. Environmental influences can be physically, technologically, economically, politically and culturally. Influences exerted by different institutions, such as suppliers, competitors and customers. The environmental conditions are particularly relevant because where transnational cooperation is taking place.
Organisational Buyer Behavior
Overview
(I) Distinguishing factors
(II) Influences on Organisational Buyer Behavior (III) Organisational Buying Decisions (IV) Organisational Buyer Decision Process
Distinguishing Factors
(A)Market Structure and Demand (B)Buyer Characteristics (C)Decision Process and Buying Patterns
Distinguishing Factors
A. Market Structure and Demand
? ? ? ? ? ? Geographic Concentration Fewer, Larger Buyers Vertical / Horizontal Markets Derived Demand Inelastic Demand Fluctuating Demand
Distinguishing Factors
B. Buyer Characteristics
? ? ? Group Involvement Technical Knowledge Rational Motivations
Distinguishing Factors
C. Decision Process and Buying Patterns
? ? ? ? ? ? ? ? ? Formality Complexity Lengthy Negotiation Multiple Suppliers Large Orders Infrequent purchases Direct buying Reciprocity Importance of Service
Influences on Buyer Behavior
A. B. C. D. Environmental Factors Organisational Factors Interpersonal Factors Individual Factors
Influences on Buyer Behavior
A. Environmental Factors
? ? ? ? ? ? ? Physical Technological Economic Political Legal Ethical Cultural
Influences on Buyer Behavior
B. Organisational Factors
? ? ? ? Tasks Structure Technology People
Influences on Buyer Behavior
C. Interpersonal Factors
?
? ? ? ? ?
Buying Centre roles
Initiators Influencers Buyers Deciders Gatekeepers
Influences on Buyer Behavior
D. Individual Factors
? ? ? Motivation Perception Learning
Interpersonal Conflicts
Differences to due members’ objectives, personalities and decision making style Conflict over Evaluation Criteria of Vendors
Conflict over capabilities of vendors in matching up to standards
Conflict Resolution
Competing
• “Let’s do it my way”
Accommodating
• “I see you point of view”
Collaborating
• “May be we can work this one out”
Avoiding
• “Better let the situation cool down before we act”
Compromising
• Let’s split the difference”
Organisational Buying Decisions
• Types of Decision Situations:
? New Task ? Modified Rebuy ? Straight Rebuy
Organisational Buying Decision Process
Problem Recognition Need Description Product Specification
Vendor Search
Proposal Request (RFP, RFQ)
Vendor Selection
Purchase Routine Selection
Postpurchase evaluation
Attributes for Evaluation of Vendors
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Overall Reputation of supplier Financing terms Supplier’s flexibility in adjusting to company needs Technical services offered Confidence in the salespeople Convenience in placing the order Data on reliability of the product Price Technical specifications Ease of use and maintenance Preferences of principal user of the product Training offered by the supplier Training time required Reliability of deadlines After Sales Service
doc_290469191.pptx