Final_Book_Notes[1] - Book Notes: NOTE: Chapter 11 on final...

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Book Notes: NOTE: Chapter 11 on final also but I did not take book notes on it Chapter 4, Buyer Behavior and the Buying Process: Types of Customers: Producers: buy products and services to manufacture and sell their products and services to customers Buyers working for producers are involved in two types of buying situations: 1. buying products that will be included in the products the company is manufacturing 2. buying products and services to support the manufacturing operation OEM (Original Equipment Manufacturers): buyers that work for them purchase goods (raw and processed materials, components) to use in making their products Ex. GM buys glass windshields from a company and uses them in the automobiles they sell to customers End User Purchases: when producers buy goods and services to support their own production and operations, they are acting as end users. Ex. Paper towels (MRO Supplies) or machine tools (Capital Equipment) Capital Equipment: Items that are major purchases that the producer uses for a number of years. Focuses on lifetime operating cost rather than the initial purchase price because the equipment is used over a long period of time. Ex. Computers, Machine tools MRO Supplies/Services: Typically items that are a minor expense and therefore are usually less important to businesses than are many other items. Ex. Supplies: Paper towels Services: Internet, Transportation Resellers: buy finished products or services with the intention to resell them to businesses and consumers Ex. Barnes and Noble Complexity of the Organizational Buying Process: Derived Demand (Vs. Direct Demand): purchases made by customers ultimately depend on the demand for their product (Sales to OEMS and resellers are based on this) Ex. Company selling potatoes to McDonald’s depends on how many fries McDonald’s sells
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Eight Steps in an Organizational Buying Process: 1. Recognizing a need or problem 2. Defining the type of product needed 3. Developing product specifications 4. Searching for qualified suppliers 5. acquiring and analyzing proposals 6. evaluating proposals and selecting a supplier 7. placing an order and receiving the product 8. evaluating product performance Three Types of Organizational Buying Decisions: Creeping Commitment: means a customer becomes increasingly committed to a particular course of action while going through the steps in the buying process Straight Rebuy: the customer buys the same product from the same source it used previously (usually triggered by low inventory) Modified Rebuy: the customer has purchased the product or similar product in the past but it interested in obtaining new information (usually when supplier is unsatisfactory, new product is available, buying needs change) Buying Center: an informal cross-department of people involved in a purchase decision Who makes the buying Decision? Users:
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This note was uploaded on 03/30/2008 for the course MSC 313 taught by Professor Iles during the Spring '08 term at Michigan State University.

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Final_Book_Notes[1] - Book Notes: NOTE: Chapter 11 on final...

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