12_Organizational_and_Household_Decision_Making_S1

12_Organizational_and_Household_Decision_Making_S1 -...

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Chapter 11 Organizational and Household Decision Making
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Organizational Decision Making Collective decision making Organizational buyers buy from B2B marketers Decisions become very important due to great responsibility for others Buyer’s perception of purchase situation is affected by expectations of supplier, organizational climate of own company, and buyer’s assessment of own performance Organization’s members share information and develop “organizational memory” 2
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Organizational vs. Consumer Decision Making Organizational buying is different… Involves many people Precise, technical specifications (require a lot of product knowledge) Past experience and careful weighing of alternatives (impulse buying is rare) Decisions are often risky (to one’s career) Substantial dollar volume More emphasis on personal selling 3
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Organizational vs. Consumer Decision Making Similarities Emotions do guide decisions Brand loyalty Long-term relationships Aesthetic concerns Branding and product image “Intel Inside” 4
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How Do Organizational Buyers Operate? Organizational buyers are influenced by: Internal stimuli Buyer’s psychological characteristics External stimuli Nature of buyer’s organization Overall economic/technological environment of industry Cultural factors Different norms for doing business in different countries 5
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Type of Purchase The more complex, novel, or risky the decision, the more effort the buyer will devote to information search/evaluating alternatives Fixed set of suppliers for routine purchases reduces information search in evaluating alternatives 6
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The Buyclass Framework Buyclass theory of purchasing dimensions Level of information gathered prior to decision Seriousness of evaluation of alternatives Buyer familiarity with purchase Buying Situation Extent of Effort Risk Buyers Involved Straight rebuy Habitual decision making Low Automatic reorder Modified rebuy Limited problem solving Low to moderate One or a few New task Extensive problem solving High Many 7
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Decision Roles In collective decisions, one may play any (or all) of the following roles: Initiator Gatekeeper Influencer Buyer User 8
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B2B E-Commerce Internet interactions between two or more businesses Exchanges of information, products, services, or payments Internet provides online catalog of products and services Alibaba.com 9
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This document was uploaded on 11/04/2011 for the course MKGT 633 at S.F. State.

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12_Organizational_and_Household_Decision_Making_S1 -...

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