Solomon Ch - 12 Revised

Solomon Ch - 12 Revised - 12 1 Chapter 12 Organizational...

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Unformatted text preview: 12 - 1 Chapter 12 Organizational and Household Decision Making By Michael R. Solomon Consumer Behavior Buying, Having, and Being Sixth Edition 12 - 2 Organizational Decision Making • Collective Decision Making – A process in which more than one person is involved in the purchasing process for products or services to be used by multiple consumers • Organizational Buyer – A person who purchases goods and services on behalf of companies for use in the process of manufacturing, distribution, or resale • Business-to-Business Marketers: – Specialize in meeting the needs of organizations such as corporations, government agencies, hospitals, and retailers • The organizational buyer’s perceptions of the purchase situation is influenced by: – Expectations of the supplier – Organizational climate of his own company – Assessment of his own performance 12 - 3 Organizational Decision Making Versus Consumer Decision Making • Factors which distinguish organizational and industrial purchase decisions from individual consumer decisions: – Purchase decisions frequently involve many people – Products are often bought according to precise technical specifications that require a lot of product category knowledge – Impulse buying is rare – Decisions are often risky – The dollar volume of the purchase is substantial – More emphasis on personal selling than advertising 12 - 4 How do Organizational Buyers Operate? • Type of Purchase: – The type of item to be purchased influences the organizational buyer’s decision-making process – Buying Center: • A group of people who make the more complex organizational decisions • The Buyclass Framework: – Straight rebuy: A habitual decision – Modified rebuy: Involves limited decision making – New task: Involves extensive problem solving 12 - 5 Organizational Buying Decision Types 12 - 6...
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This note was uploaded on 06/17/2011 for the course BUS 347 taught by Professor Cherylluczak during the Fall '10 term at St. Xavier.

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Solomon Ch - 12 Revised - 12 1 Chapter 12 Organizational...

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